(emphasis mine) [my comment]
Tuesday, May 19, 2009
The Flagrantly Visible Hand
Now with a hearty helping of futures manipulation (courtesy of the SLP?). None of this should be news to Zero Hedge readers. The video below from Fox Business News discusses all you need to know about how to prop a market about to crash. Fast forward to 2 minutes and 30 seconds.
Transcript courtesy of myprops.
"Something strange happened during the last 7 or 8 weeks. Doreen you probably can concur on this -- there was a power underneath the market that kept holding it up and trading the futures. I watch the futures every day and every tick, and a tremendous amount of volume came in a several points during the last few weeks, when the market was just about ready to break and shot right up again. Usually toward the end of the day — it happened a week ago Friday, at 7 minutes to 4 o'clock, almost 100,000 S&P; futures contracts were traded, and then in the last 5 minutes, up to 4 o'clock, another 100,000 contracts were traded, and lifted the Dow from being down 18 to up over 44 or 50 points in 7 minutes. That is 10 to 20 billion dollars to be able to move the market in such a way. Who has that kind of money to move this market?
On top of that, the market has rallied up during the stress test uncertainty and moved the bank stocks up, and the bank stocks issues secondary — they issues stock — they raised capital into this rally. It was perfect text book setup of controlling the markets — now that the stock has been issued..."
Now, when Bernie was caught running a ponzi, all hell broke loose... What is the proper etiquette in this case? Should investors give the utter failure of regulators to safeguard proper market efficiency the ass or the crotch.
Chuck at Rebel Traders reports about painting the tape.
Painting The Tape
By · 1:15 a.m. today
Saturday, May 30, 2009
Interesting how the media never mentions that the only reason the market ended in the green today was activity that took place in the span of only several minutes.
Was this 'program trading' or intentional painting of the tape?
Painting The Tape—
The illegal in which traders buy and sell a specific security among themselves, creating the illusion of high trading volume and significant investor interest, which can attract unsuspecting investors who might then buy the stock and enable the traders to profit.
Well whatever this was that occurred at exactly 3:55pm EST it was the event that prevented the market from going into the red.
See the horizontal red line on the chart below that marks the top... that red line is the resistance level going back to the previous high on May 8th, resistance held.
I will have much more on Saturday and on Sunday...
The chart below is a 5 minute chart of the S&P; 500 E-Mini futures for today.
(click image for larger view)
S&P; 500 E-Mini Futures
My reaction: Wow, Fox News is openly talking about stock market manipulation. That is very different from the last time I saw the Plunge Protection Team discussed on national television (See CNBC Video Clip Denying Existence of Plunge Protection Team).
Also interesting, these blatant manipulations of S&P; futures are occurring at the same time as clear manipulation can be seen in COMEX gold open interest.
Notice a pattern here?
For years, there have been accusations of manipulations in the gold and stock market. Now that interference is becoming so obvious it can't be dismissed anymore.
The lunatics aren't the people who believe in government interference/manipulation of markets, they are the ones who don't.
Background information on government interference in US financial markets:
The Visible Hand of Uncle Sam examines information indicating that the U.S. government has surreptitiously intervened in the American stock market.
Over-the-Counter Derivatives Markets and the Commodity Exchange Act is a 1999 report where The President's Working Group on Financial Markets recommends changes to the Commodity Exchange Act. (this report is proof that The President's Working Group has been actively involved in the deregulation of US financial/derivative markets.)
The Quiet Coup - The Atlantic explains how the finance industry has effectively captured the US government—a state of affairs that more typically describes emerging ma rkets, and is at the center of many emerging-market crises.
The Story of Deep Capture is a tale of prominent journalists who help cover up a massive financial crime while toadying to some of Wall Street's slimiest operators.
OCC's Quarterly Report on Bank Trading and Derivatives Activities for Q4 2008 shows how derivatives activity in the US banking system is dominated by a small group of large financial institutions. (look at table 1-12)
Gold and Silver "Leasing" Examined explains gold leasing and how Wall Street ended up horribly short gold.
The 'Phantom Shares' Menace explains how naked short selling distorts shareholder control.
Securities Lending - Executive Summary explains how the basics of securities lending is a collateralized loan, where the company borrows money from a brokerage firm at a very low rate collateralized by one or more securities held in the company's portfolio. (see *****401(k)s Hit by Withdrawal Freezes***** for why securities lending is a problem)
Treasury Market Practices Group endorses several measures to address the widespread and persistent settlement fails in US Treasury securities. It correctly deduces that the reason Wall Street is naked short selling treasuries is the complete lack of any penalties for doing so. This lack of any negative consequence is why failures to deliver hit 2.5 trillion last October. (See *****Wall Street Selling Imaginary Treasuries***** more on why these failures to deliver are a problem)
The Long and Short of It is filled with a ton of information about (naked) short selling. It explains how legitimate/illegal short selling works, compares regulations and disclosure requirements between Hong Kong, United States, United Kingdom, Australia, and Singapore, etc...
PIRATES OF THE COMEX examines how traders and investors in precious metals are being robbed in US futures markets.
explains how broker-dealers are selling billions, if not trillions, of imaginary assets and how investors are completely oblivious to the counterparty risk created by these "Share entitlements" (stock IOUs)
Wall Street Addicted To Selling Non-existent Shares explains how delinking of the clearance and settlement of transactions has resulted in hundreds of millions of undelivered equity securities being outstanding on any given day in the US equities markets.