What Was THAT? (Friday Market Close)

market-ticker.org...

Notice the huge volume spike (the blue underlay) on the chart at the close.

There were 146,083 contracts traded in that one-minute period between 14:59 and 15:00 (Central); the next minute, when the real dislocation hit, traded 91,774 - after the cash market bell had rung.

The closing bell is usually busy. But this sort of volume is absolutely unheard of.

There are only two possibilities that I can come up with, and both demand answers:

"Someone" was forcibly liquidated out of a short position - a fairly big one. 1,000 S&P "big" contracts has a maintenance margin requirement of $22,500,000 - that's not a small position, and each point, as noted, has a $250,000 move associated with it. Who was it and why?
"Someone" who didn't give a damn if they lost a sizable amount of money intentionally wanted to shove the cash market up through the 200DMA, a critical technical level. They were 1 minute late; they succeeded in doing so in the futures, but not the cash!
#2 makes for great conspiracy theories, but my money is on scenario #1 - someone got forcibly liquidated into the close, perhaps a big customer, perhaps a hedge fund, but someone.

Ok any of you experts want to explain this?

What does this all mean? A few things:

The stops up there are gone. They were potential rocket fuel for next week and the propellant to take us to - and potentially through - the 200DMA on the cash.
A bunch of someones had a lot of contracts that were short taken out on them. Those nearly 250,000 E-mini contracts did change hands, and odds are a very large percentage of them constituted stop-loss orders on contracts sold short from when we were up toward 933 a few weeks ago. Those traders are going to be quite pissed off, but that's the risk of the game.
Next week is very likely to be extraordinarily violent, especially Monday. /ZN (10 year Treasury futures) has seen an insane drop in open interest over the last few weeks. This little game undoubtedly severely damaged open interest in the E-Mini /ES contract.

I don't get it.




Mod edit: Changed URL from home page to point to specific article. -- Majic

[edit on 5/31/2009 by Majic]

Leap in U.S. debt hits taxpayers with 12% more red ink
www.usatoday.com...

Well stick a fork in it we are done.

It pretty much means someone is trying to manipulate the market into looking reallllllyyyyyyyy good. I mean really good.

No doubt we will hear about this as a sign the economy is recovering.

Take my word for it. It's not.

Edit: Fat fingers.

[edit on 5/30/2009 by Tentickles]

reply to post by Tentickles


I've had this thought for a while now, that someone is playing around with the markets to make things seem better than they are. I wonder what the purpose would be--to lull the world into a false sense of security, just to pull the rug out from under it?

Originally posted by Tentickles
It pretty much means someone is trying to manipulate the market into looking reallllllyyyyyyyy good. I mean really good.

No doubt we will hear about this as a sign the economy is recovering.

Take my word for it. It's not.

Edit: Fat fingers.

[edit on 5/30/2009 by Tentickles]

That's what I figured, Tent.

I believe someone, make that someones, have been manipulation the market since just before the election, but they didn't count on it getting so out of hand and perhaps they are trying to correct the cycle.

Thanks for the reply, I don't know diddly about the stock market but I found this interesting.

[edit on 093131p://bSaturday2009 by Stormdancer777]

Originally posted by octotom
reply to post by Tentickles

 

I've had this thought for a while now, that someone is playing around with the markets to make things seem better than they are. I wonder what the purpose would be--to lull the world into a false sense of security, just to pull the rug out from under it?

I think they crashed it first

www.enterstageright.com...

Stormdancer777

Member






Registered: 113030p://bWednesday2007
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Member is on ATS now.





posted on 033131p://bSunday2008 @ 03:21 PM single this post "quote"REPLY TO:
www.abovetopsecret.com...

reply to post by asmeone2

--------------------------------------------------------------------------------


I know of someone who threatened it,



Speech given by Mo Strong





What if a small group of these word leaders were to conclude that the
principle risk to the earth comes from the actions of the rich countries?
And if the world is to survive, those rich countries would have to sign an
agreement reducing their impact on the environment. Will they do it? Will
the rich countries agree to reduce their impact on the environment? Will
they agree to save the earth?
The group's conclusion is 'no.' The rich countries won't do it. They won't
change. So, in order to save the planet, the group decides: isn't the only
hope for the planet that the industrialized civilizations collapse? Isn't it
our responsibility to bring that about?
This group of world leaders form a secret society to bring about a world
collapse. It's February. They're all at Davos. These aren't terrorists -
they're world leaders. They have positioned themselves in the world's
commodity and stock markets. They've engineered, using their access to stock
exchanges, and computers, and gold supplies, a panic. Then they prevent the
markets from closing. They jam the gears. They have mercenaries who hold the
rest of the world leaders at Davros as hostage. The markets can't close. The
rich countries...?" and Strong makes a slight motion with his fingers as if
he were flicking a cigarette butt out of the window.
I sat there spellbound. This is not any story-teller talking. This is
Maurice Strong. He knows these world leaders. He is, in fact, co-chairman of
the Council of the World Economic Forum. He sits at the fulcrum of power. He
is in a position to do it
What if a small group of these word leaders were to conclude that the




rigorousintuition.blogspot.com...

canadiancoalition.com...





In 1978, a mystic informed Hanne and Maurice Strong that "the Baca would become the center for a new planetary order which would evolve from the economic collapse and environmental catastrophes that would sweep the globe in the years to come." The Strongs say they see the Baca, which they call 'The Valley Of the Refuge Of World Truths '",as the paradigm for the entire planet and say that the fate of the earth is at stake.



[email protected]/msg07064.html
rigorousintuition.blogspot.com...

canadiancoalition.com...

www.pehi.eu...

[edit on 093131p://bSaturday2009 by Stormdancer777]

Oh man, this is scary....

What will happen come Monday, is what I want to know?


Does this have anything to do with THIS - www.abovetopsecret.com... (Geithner Visits China, Begging For Their Financial Support)
Tentickles' thread.

Maybe it was manipulated to look better, for China....?

Either way, this would seem to be huge.

www.abovetopsecret.com...

Always some interesting and informative perspectives here!

Some fun as well but I've learned a lot from people on this thread,they chat about Friday as well.

What president do we all know and love that comes from the Church of Environmentalism?


[edit on 093131p://bSaturday2009 by Stormdancer777]

reply to post by LostNemesis


Looks like we all have a lot of post that are connected.

reply to post by irishchic



Thanks irish, I will have to go check it out.

Come monday the market will probably be very volatile. Either going up by a ton or going down by a ton.

It really depends on the investors at this point.

Originally posted by Stormdancer777
reply to post by LostNemesis

 

Looks like we all have a lot of post that are connected.

Oh how I just love a good plot!!

At this point, it's either lay back and enjoy the show... Or hurry up and wait.

Either way, we are living in historic times, and should be excited to be witnessing it! ( maybe? )

[edit on 30-5-2009 by LostNemesis]

Oh and about Strong, guess where he lives now,

China.

reply to post by LostNemesis


I'm not very excited at all. I'm rather dreading the coming months as it all comes to a head.

Historic times though, we'll look back and remember them when we are old and talking to our grand kids.

"Kids, come sit down, let me tell you about the time when Gas was only $1.35!"

reply to post by LostNemesis

Either way, we are living in historic times, and should be excited to be witnessing it!

Yes we are, there is no doubt about that.

reply to post by Tentickles



LOL Tent, I remember when my husband and I had to scrap together 25 cents for a gallon of gas.
Now I refuse to drive, at five dollars a gallon, that is the plan, I guess.

reply to post by Tentickles


I will agree with ya about the dread. The constant sense of 'impending doom'. Wanna hear something weird, though?

I went to a Crisis walk-in Mental Health clinic, hoping to get some good meds, for additional help dealing with stress.

I ranted about riots, chaos, and a New World Order marching it all in... and each American slaughtering their neighbors, to take their supplies... etc, etc.
And, err.... She didn't commit me, and just asked how long I have had those thoughts. Lol She simply looked worried, but not like this was the first time she had heard such things.
Common-Anti-Depressants that do no good. Apparently she didn't even think I was delusional.

Anyway, yeah. The stress is insane. The dread, is getting worse everyday. Still though, lots of stories to tell the grandchildren.

reply to post by LostNemesis


Cute story, lost.

I am not afraid, I don't know why, but i feel relatively calm.

I think Monday is the deadline for GM. I first thought it was traders shorting GM then selling on Monday but I didn’t check the numbers.

When you see an increase in volatility 30 minutes before the closing bell traders cant trade that fast and is computer generated, unless a hedge was in action. Usually hedges form a pact they all act at once on the same stock.

Naked short sellers can bring down a company fairly fast but we seen that even though short selling was banned in 2008 the market continued to fall.

That crazy chart on Friday with the up and down spikes was a ton of money changing hands. I’m convinced that Hank Paulson was manipulating the markets. I don’t know if Geitner is. I’m still missing something.

I agree something is going on. I’m expecting another major crash soon. No doubt.

If GM files for bankruptcy it will be the 4th largest in US History. Lehman was number 1 followed by Washington Mutual. This will cost taxpayers billions.

Obama is also raising interest rates. We could easily see a 20% annual inflation rate which would cause Hyperinflation in three years.

I’m hoping to find an answer to Friday as well. This could easily be a repeat of 2008.