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Plunge Protection Team SCARY PRECISE ?!?!

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posted on Feb, 17 2009 @ 08:47 PM

SCARY ?!?!...

The lowest point the DOW hit in the midst of this crisis, and considered a KEY Support point was 7552.29 last November.

Yet Today, the day Obama signs the latest stimulus bill, the DOW plunges, yet ends NO LOWER Than 7552.60 !

Add to that...

The interesting occurrence of the DOW plunging an almost exactly interesting number of 777 on the day the original TARP legislation failed to pass the House back on Sept. 29.


This REALLY makes me wonder how much influence the Administration's Plunge Protection Team can ACTUALLY Exert in PRECISELY Manipulating a so-called "free market".



posted on Feb, 17 2009 @ 09:31 PM
The November low was 7449.38. You should do more reasearch....

posted on Feb, 17 2009 @ 10:23 PM
yes i always was a bit turned off by that perfect 777 figure back in the fall.

whats most important to remember though is that the DJIA is not an average of all stocks being traded, merely an average of 30 major corporations traded in high volume across the exchanges.

so in order to manipulate the dow, you can easily pump equity into a few stocks (or components, as they are referred to) and create an artificial change in the range without changing market conditions dramatically.

Whats REALLY creepy is the way stocks that aren't components of the DJIA still tend to track the index to a certain degree. there are few that outperform, or swing on a greater percentage than the index, but few (barring the obvious corporate event here and there, especially in biotech) behave against the DJIA.

Its as though the lot of investors trading securities feed into some self determinate collected conscious. The S&P is by far the more accurate index, in terms of establishing market direction.

The PPT is certainly out there trading through the prime brokerages of the best securities firms, Goldman Sachs E&C, JPM, CS, etc. I doubt they interfere as much as people here may want to believe, but the real paradox on wall street isnt the tinkering by the treasury, but really the way money has straight up vanished from equities (that form the indexes) and into the credit derivatives market.

Its a fundamental--when theres less money in a market and thus less liquidity, prices swing in a less predictable fashion and exaggerate/overreact to buy/sell pressure. With huge corps getting squeezed by volatility in their capital/equity, their exposure to credit downgrades and defaults heightens. This is why the Credit Default Swap (CDS) has become such a profitable and monstrous credit derivative. Theres hundreds of trillions of dollars of unsettled/open contracts in the derivative markets, more than the worlds GDP for 4 years. Though its hard to chart, a large majority of this is in credit derivs. Thats an awful lot of money speculating on the failure of companies.

whats particularly nasty about this is it's Hedge Funds and alt investment firms that've made the killing on these instruments, taking gains on massive payouts from the so called "insurance" provided by the CDS. HF clients are folks who are often already loaded(as minimum initial investments at top shelf funds range at about 7mil) and they get the returns in cash minus usually 20% plus fees.

This money isn't getting transferred from one company to the next, like some massive corporate/gov takeover. its going right into the bank accounts of private citizens, with no compulsion whatsoever to generate an impact on the market, positive nor negative. This is not a good thing.

Believe me, if half the money held in open derivative contracts was invested into the stock market, the DJIA would be well over its highs in 2007. Instead, investment banking and institutional investment firms (overseeing pensions, mutual funds etc) are getting robbed paying out to HFs collecting on swaps. Why do you think this bailout money is so hard to trace? Short CDS gains can turn 100k into 10 million in a year. Imagine paying out on that bet, youd be F**ked too.

posted on Feb, 18 2009 @ 12:52 AM

Originally posted by atoms.2008
Yet Today, the day Obama signs the latest stimulus bill, the DOW plunges, yet ends NO LOWER Than 7552.60 !

I think the simplest answer is technical analysis atoms.2008.

Every day trader, investment bank, prop desk, and hedge fund, worldwide, all trade the same charts. The same formations, support levels, resistance levels...Fibonacci ratios....and technical indicators, albeit with some variations in methodology & interpretation.

I think this might be the "self determinate collected conscious" that chaeone86 is referring to.

How often have we seen a stock bounce precisely off the lower trend line? Stall at overhead resistance...or retest previous lows as was the case today. Utilizing a blend of TA and fundamental analysis, these moves, particularly primary moves, can be anticipated with uncanny precision. All based on previous price performance...and repetitive human emotion.

*I'm not denying the stealthy presence of the Exchange Stabilization Fund on occasion.


posted on Feb, 18 2009 @ 01:17 AM
reply to post by atoms.2008

Quite a bit...
"They" come in when market action is not in their favor...
Commodities - Latest Trading Prices and Data from

posted on Feb, 18 2009 @ 01:21 AM
I watched it live yesterday.
It got to a certain point, the sellers came in and tried to slam it.
And instantly it was smashed up.
It was so quick like nothing ive ever seen.
Sellers backed off after that.
I believe its the government of course.
I believe they can alter the market however they like.
With a magical button of pretend contracts.

posted on Feb, 18 2009 @ 01:43 AM
Here are all 30 DOW companies in one chart for the day:


Not sure if it works for more than today...

At 11:57 AM ET: The major stock indexes are showing gains today with both large- and small-cap names getting a boost. The S.&P. 500 index is higher by 0.44%, while the S.&P. 600 is up 0.15%. However, strength appears to be concentrated in those stocks exerting the greatest influence on their index; advance-decline numbers on the NYSE show that most stocks are actually lower today. Among individual stocks, the top percentage gainers in the S.&P. 500 are MBIA Inc. and Akamai Technologies Inc.

[edit on 18-2-2009 by Dbriefed]

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