What do you think about this comment.

[OldCoyote]

Do you think that that someone is creating the market surge?


www.zerohedge.com/news/2016-02-10/someone-desperately-intervened-save-stocks-yesterday

[Virgil Showlion]

Feb 10, 2016 9:39:09 GMT -5 OldCoyote said:

Do you think that that someone is creating the market surge?


www.zerohedge.com/news/2016-02-10/someone-desperately-intervened-save-stocks-yesterday

The markets have been reliably goosed at the NY close for the past few weeks. On Monday the Dow surged 200 points, cutting its losses in half in a matter of minutes.

It could be the PPT or just computers and day traders buying into the trend and making it a reality. We'll never know.

[ArchietheDragon]

I don't, but I am not a conspiracist in any way. 

Are they suggesting that the fed is taking money from their balance sheet and buying stocks on the open market to boost the value of those shares?  Or that the fed or some co-conspirators of theirs are simply fraudulently reporting a higher value of the market. 

I can't think of another scenario that would fit the criteria someone creating a market surge.  But I just can't wrap my head around either of those happening.    In order for the feds to be buying enough shares on the open market to cause a surge, it would have to be a huge amount of money.   Someone would surely notice that.    Ok, so maybe someone does and they are sounding the alarm but no one is listening... (ie, the guy who sounded the alarm on Madoff years before he was jailed).  Or maybe the Fed has hundred of fake organization that buy for them so they the money doesn't point back to the feds.   Again, someone who surley know.   But is it possible that only a few know the truth and everyone else knows only part of the system and the they don't enough to know what they are doing.  I guess that is possible.     It just boils down to I am not a conspiracy theorist.   And of course, there have been and will continue to be conspiracies, so it is possible that this is one of them. 

[Aman A.K.A. Ahamburger]

OC, just my thoughts here... it's all about the efficient-market hypothesis, or rational expectations if you will. This concept has been around for as long as the markets essentially.

There are articles on Marketwatch and other places all the time about resistance and moving averages. Traders have always used these to try and gauge where the market is going - essentially impossible because of irrational behavior. Over the last 10-15 years computers have been introduced in a big way to try and help control irrational behavior, IE they have tried to make the market more efficient by adding stops and buys at certain levels, online trading charts, etc... Of course this hasn't changed much except for traders/big firms ability to set automatic buys/sells at price points according to charts. I guess we could speculate that the market may already be lower if big firms couldn't buy exactly when they wanted to...

Again, JMO, but stick to the fundamentals the most important being; are companies making money?(Earnings) and is there a massive debt bubble built up somewhere?(currently it's China).

The only way to beat the market, IMO, is to stay and don't get greedy.

[Virgil Showlion]

No ramp at the close today. Dow off ~100 points, and below 16,000 surprisingly. It's been a pretty consistent floor up until now.

[Aman A.K.A. Ahamburger]

It's been an interesting ride down from 18,300 that's for sure, my friend. tyfighter3 noted a while back that the market keeps making lower tops. It's going to be interesting to see if it stays range bound until the next round of earnings in April.

One thing we know for a fact, Now even private-equity firms are buying back their own shares. Then you add in...

Share buyback machine remains in overdrive and experts warn it will end badly

.... Stay

[OldCoyote]

I think others see problems on the horizon.


www.bloomberg.com/news/articles/2016-02-12/credit-default-swaps-are-back-as-investors-look-for-panic-button

[Aman A.K.A. Ahamburger]

Re: Post #5

There's Only One Buyer Keeping S&P 500's Bull Market Alive

-Corporate buybacks poised to surpass the all-time high in 2007
-Contrast to fund outflows running at almost fastest rate ever

Demand for U.S. shares among companies and individuals is diverging at a rate that may be without precedent, another sign of how crucial buybacks are in propping up the bull market as it enters its eighth year.

Standard & Poor’s 500 Index constituents are poised to repurchase as much as $165 billion of stock this quarter, approaching a record reached in 2007. The buying contrasts with rampant selling by clients of mutual and exchange-traded funds, who after pulling $40 billion since January are on pace for one of the biggest quarterly withdrawals ever.

[Aman A.K.A. Ahamburger]

How are these buy back being funded??

Worst corporate debt levels since Great Recession

Easy-money policies from the Federal Reserve helped grease the wheels of the economy and fuel a corporate binge on buybacks and mergers, but as corporate debt reaches levels not seen since the Great Recession....



Outside of corporate debt levels, the number of companies spending more than they earn on share buybacks also has risen to levels not seen since the recession..

[Aman A.K.A. Ahamburger]

To the trend outlined in this thread.. Stay

-Clock Ticks on Bull Market With No New High for Stocks in a Year
-Bull Market Losing Big Ally as Buybacks Fall Most Since 2009