When will the Plunge Protection Team strike?
Diupdate
That the Plunge Protection Team has been called in means there is big trouble! The PPT is a real lawful entity designed to manipulate the US Stock Markets. It is officially known as the Working Group on Financial Markets (WGFM). It was created by by President Reagan’s Executive Order 12631 in 1988 following the 1987 crash. Its purpose is to lawfully prevent catastrophic market crashes. All the above factual knowledge is available from reputable sources findable via your fav search engine.
This is both good and bad news. Those short in the market could protect their positions - and if they have enough guts take long positions for a limited period. It's not my business to say when to do this, as I have no advance knowledge of the future or when the PPT will strike!
Note carefully that my language above is speculative, except that Dow and Wall Street are in big trouble. This is now common knowledge as the fall in the market has well exceeded the respected figure of 16%. If/when the PPT weighs in it'll have to be with billions and billions of US-Dollars, as loads of people are likely to set up sell orders for the next opening of the markets.
That the PPT has been called in does not mean that they have a 100% chance of moving the US markets north.
It all depends on whether they have enough to push back the deluge of selling they're likely to meet. Nobody I know, knows exactly how the PPT works. Perhaps they will get first orders, beating back all regular investors from selling or shorting. That would make sense. If they are successful, Forex pairs especially those with Yen and AUD could be affected by indirect effect. What it would mean for US-Dollar strength, is another problem.
Note also that other countries have variants of the PPT, some operating covertly.
This is both good and bad news. Those short in the market could protect their positions - and if they have enough guts take long positions for a limited period. It's not my business to say when to do this, as I have no advance knowledge of the future or when the PPT will strike!
Note carefully that my language above is speculative, except that Dow and Wall Street are in big trouble. This is now common knowledge as the fall in the market has well exceeded the respected figure of 16%. If/when the PPT weighs in it'll have to be with billions and billions of US-Dollars, as loads of people are likely to set up sell orders for the next opening of the markets.
That the PPT has been called in does not mean that they have a 100% chance of moving the US markets north.
It all depends on whether they have enough to push back the deluge of selling they're likely to meet. Nobody I know, knows exactly how the PPT works. Perhaps they will get first orders, beating back all regular investors from selling or shorting. That would make sense. If they are successful, Forex pairs especially those with Yen and AUD could be affected by indirect effect. What it would mean for US-Dollar strength, is another problem.
Note also that other countries have variants of the PPT, some operating covertly.
Catatan
Closed several short positions on Wall Street and other indices I've been shorting. Took the money that was on the floor. Now will trail down with the rest of my positions if it goes in my favour, else I get stopped out for no loss. Greed is not the answer!! Controlling or minimising loss is the business. Yes the markets are there to make us feel stupid, as I've said in other posts. Two ways this happens:
1. Staying in and losing equity or profits.
2. Being left behind and made to feel one could have gotten more.
Coulda-woulda-shoulda and FOMO are the ultimate traps. So in my common sense approach to markets, knowing their game - it's better to take some and not be victim of their silly game.
From a safer position I can still trail down and withstand a bull rebellion. So now, I can take um on with more muscle. :))
Catatan
China's PPT went into overdrive, shoring up the their stock market. I'm not sure I'm allowed to post the link. Google should help. The US PPT is has probably not gone to work as yet. Get the big picture. Think - what does all this mean?! It means that the markets want to move south big time. Like hello - there is the larger problem of global debt. Artificially pumping the stock markets is not gonna solve the big issue; it's likely to make it worse. I suggest that anybody with common sense will wait for the right moment to short the markets (or add to their short positions). History has shown that PPTs have not been successful in maintaining buoyancy. So - the PPT can actually help sensible traders make more dosh!!
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus youtu.be/NjTdvALChwk ]
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