Was there Market manipulation Aug 5, 2008?

To support the data glitch theory on this one...here's the daily chart for the DOW on the site I watch.

Blue:

Screw your political bent. All the US needs is to properly regulate their markets.

You don't see Canada in the same crises do you?

Take note.

JK

Unfortunately the US isn't regulating much of anything these days, and you are right, that is why we are in this mess. They didn't regulate the Banks (repeal of the Glass Steagall Act), they didn't regulate the the mortgages (not even Freddie & Fannie), they having done anything about the FDIC staying on top of the amount of bank failures that are happening or still to come, they are allowing false data to the public (their entire definition of a recession is just a lie that refuses to show the truth) and they aren't regulating the market.

What did they do? Pass a housing bailout that started as a simple document to help troubled homeowner's (oops, it turned out that the original was practically hand drafted by a couple of Banks....hmmm...)

market-ticker.denninger.net...

and turned into a a flat out 700 page monster that really bails out banks and corporate America.

In fact the then final straw was the part where Freddie and Fannie were bailed out to appease foreign investors:

Paulson announced the rescue plan, saying he would seek authority to buy unlimited equity stakes in the companies and their bonds if needed, while the Federal Reserve would lend directly to Fannie and Freddie. Congress included the proposals in a broader housing bill that President George W. Bush signed into law last week.

Asian investors were among the most important groups to soothe because central banks, financial institutions and funds in the region own $800 billion of Fannie Mae and Freddie Mac's $5.2 trillion in debt, according to data compiled by the Treasury. U.S. officials were concerned that sales from the region would push lending rates higher, said the people, who declined to be named because the discussions were confidential.

www.bloomberg.com...

Don't worry, it won't all fall apart because you and I and our children and children's children will pay for this housing bill, probably to the potential tune of trillions.

Pay no attention to whoever gets the Oval office come January. They won't last more than a term inheriting the financial mess this country is in. There is no way to fix this for you and me without further manipulation and shell games. In addition, our mess has spilled over to foreign investors we have to try and appease to back stop the mess.

Every cut the Fed made prior to yesterday pushed the price of oil higher. Yesterday's inaction saw a drop in oil prices and a big pump on the market, when previously it took a rate cut to do that. But I guess now, it only takes inaction to get an up day like that, even though it's not fundamentally sound.

Hi
Can someone check out the exact time when this drop accured in other world markets?

Hi
Can someone( as i´m no expert) check the other world markets on the same exact time?To see if there were some other anomalies

Interesting theory being floated on why oil is down this week. China has shut down their factories to try and reduce the amount of smog for the Olympics, so demand from them is way down.

I haven't actually analyzed this myself, but if true, the drop in oil prices is just a temporary blip and isn't going to last as they fire them all up again in one shot after the event.

Originally posted by leo123
I am a stockbroker of some 25 years - I *GUARANTEE* the accuracy of that chart is complete and utter BS.

JK

I think that was a little strong. I've seen some of these chart services have glitches like this a lot. I don't think the OP posted BS, I think he/she just stumbled on one of these glitches and innocently questioned it.

So stockborker of 25 years, care to give us some insight into why the markets are not acting rationally?

~ opinion ~


the anomaly was not a result/product of manipulation...

the market mover now is the enormous liquidity the Federal Reserve has provided to the scores of investment banks and the favored 20 primary dealers and major brokerage houses & financial houses.
All that bad paper these bansters exchanged to the Fed for 'good' money in the form of Treasuries which was immediately cashed in---
all that 'bad' paper will need to be 'bought' back from the Fed at a future date. Right now all that fake & inflationary money is flooding the stock market, in hopes that enough profits can be secured from the banksters pumped up/excessively priced stock portfilos...so that they can buy back their 'bad' paper which is only worth $0.22 on the dollar.


the term 'manipulation' is not correct... extreme volatility and market gamesmanhip are the buzzwords for the current market.
The 'manipulators' are pumping the idea that the market has bottomed and is in a Bear market turnaround, along with the idea that we are at the end of the commodities bull market ... those are the 'traps' the fraudsters are promoting so that the unawares will buy into the present market.


~opinion~

Originally posted by St Udio
~ opinion ~


the anomaly was not a result/product of manipulation...

the market mover now is the enormous liquidity the Federal Reserve has provided to the scores of investment banks and the favored 20 primary dealers and major brokerage houses & financial houses.
All that bad paper these bansters exchanged to the Fed for 'good' money in the form of Treasuries which was immediately cashed in---
all that 'bad' paper will need to be 'bought' back from the Fed at a future date. Right now all that fake & inflationary money is flooding the stock market, in hopes that enough profits can be secured from the banksters pumped up/excessively priced stock portfilos...so that they can buy back their 'bad' paper which is only worth $0.22 on the dollar.

~opinion~

My Opinion - you are right except that I fail to see why you don't consider the above manipulation????

Maybe some broker or some very rich person sold all his stock of one company and bought from another company, with the rates being measured right in between the two transactions? Is that a possible explanation?

Nope - here ya go - it was a glitch and here's why - it happens all the time:

One final note - yesterday on the FOMC announcement we had the usual violent volatility and volume. Most brokerages have trouble with this at the instant of the announcement, with various "fun" coming with hung orders or charting.

market-ticker.denninger.net...

By the way, the rest of the linked article has nothing to do with this topic and should not be read by anyone with a weak stomach -

[edit on 8/9/2008 by Relentless]

Originally posted by leo123
I am a stockbroker of some 25 years - I *GUARANTEE* the accuracy of that chart is complete and utter BS.

JK

a stockbrokers word is as good as sewerage waste !!!

Woah - that was a tad personal!

I'd really like to see some more input from a stockbroker here - can we not attack an entire profession? There are always exceptions.

I had to suffer an attack of my line of work on another board, it was just so ugly! We have a financial forum now, please don't turn off people who might be able to contribute some first hand knowledge (especially when that post was already defensive.

Yeah i've seen spikes up and down before during the day. They really don't mean anything and it's only an index that you were looking at. I'm doubting you could get shares at a discount at that time if it was a glitch. Plus i've seen larger moves than 169 points in a matter of minutes. I wonder if I can find that chart somewhere of the dow plunging hard in a few minutes time...

Zebra

Something's going on. About a week ago 1 Australian dollar was worth about 98 cents US. Its steadily dropped every day since and is currently at 88 cents

I have applauded thte OP for catching this anomoly and questioning it.

People need to know that the accuarcy of many charting services, and their ability to handle certain circumstances is NOT Good. If you read my link above you will find that the author of the Market Ticker checked a lot of them on that day and found only one that had truely flawless charting during a very important time in the market.

Relying on software that can't handle these situations during very important moments in the markets can be critical if you are actually trading. Too many of the free charting tools out there have no obligation to be accurate (disclaimers, disclaimers). Granted no site will not have disclaimers, and glitches now and then, but some actually acknowledge it and fix their software as quickly as possible if they are causing them.

I actually threw $500.00 of my Roth this year into an account on the site he said was flawless that day (a few months ago) solely to be able to use their charting software. Somewhere down the road, when I learn enough, I'm going to need it