Tuesday Outlook: Market Manipulation?

by: David Fry March 18, 2008 | about stocks: CME / DIA / IEF / IWM / LEH / MDY / MF / QQQQ / SPY / XLF / XLY    
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No one knows except the insiders at the Fed and Treasury, and they’re not saying if they did so, but the DJIA composed of only 30 stocks is the easiest to manipulate. You could add-in a nearly 12% pop in JPM and that pushed the average higher along with a few of the biggest tech and telecom names.

The DJIA is, as some describe, mere “window dressing for the tourists” and is the index followed by Main Street, hence the focus.

What a gift JPM was given! Or so it seems. They buy what was a strong franchise for $2 a share and $30 billion in possibly free money from a desperate central bank and taxpayers. You might wonder why BSC stock traded at nearly $5 and that’s a very good question. But it seems some view the stock as an option on JPM. Those playing that game must know what they’re doing but it’s beyond my expertise.

Again, inside the numbers, equity markets had a bad day.

































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This article has 9 comments:

  •  
    Mar 18 07:59 AM
    Good intentions on that Dow save yesterday, but we all know where that road leads.
    Reply | Link to Comment
  •  
    Mar 18 08:03 AM
    You ask what big time idiots would buy?
    Plunge Protection Team
    Not that I'd call them idiots, myself. Don't take that to mean I agree with their policies but they have different goals than I do.
    Reply | Link to Comment
  •  
    Mar 18 08:07 AM
    I was thinking the same thing about the DOW yesterday...that's the easiest one for the PPT to manipulate. The PPT seems to usually target just one of the indexes...then the others reluctantly follow and slow their descent.
    Reply | Link to Comment
  •  
    Mar 18 10:04 AM
    How is it that the Dow rises 21 and the rest of the market is off almost 2%? Hmmmmmmmm...
    Reply | Link to Comment
  •  
    Mar 18 10:46 AM
    How would the 2:15pm FOMC announcement most likely affect the market (DOW, SP, and USD) ? any ideas?
    Reply | Link to Comment
  •  
    Mar 18 02:12 PM
    What about that consumer price index last week that stated we had no inflation worries because energy costs were flat?
    Reply | Link to Comment
  •  
    Mar 18 06:07 PM
    I have been preaching about manipulation for years, glad I'm not alone.
    I think this guy is on to something and I like all of his graphs.
    Reply | Link to Comment
  •  
    Mar 18 06:17 PM
    David, You are a consumate Market Master but i disagree
    with some of the comments made on the charts.
    Reply | Link to Comment
  •  
    Mar 18 06:20 PM
    David, we acknowledge you to be a consumate Market Master but i do not agree with all your comments made on the above charts. There is
    one hell of a lot going on with IWM-especially at that 64.25 level and
    SPX@1333.50. Take a close look friends. Klaudensnoval-
    Reply | Link to Comment
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