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Feds Manipulating the Stock Market?

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March 25, 2008 – Comments (5)

Someone else, Yves, has questioned this publicly first, however, with the way the stock market trading has been going, last week or the week before I was having a private conversation with a friend about how rigged the market had looked to me over a few days of trading.  It seemed that in the very last couple minutes of trading there was a whole bunch of buying that changed the day from being an all day down day to a positive day.

The first day I noticed it was a very "critical" day in terms of definitions.  On that day without those last couple minutes pushing the market up it would have closed 20% and you'd have had an official definition of a bear market.  It simply looked like someone was trying to prevent the markets from reaching that 20% down and the "It's Official, We're in a Bear" headlines.

And the markets had that end of the day buying a few days in a row.  And this was on very bad news days.  It simply looked very rigged to me.

5 Comments – Post Your Own

#1) On March 25, 2008 at 3:04 PM, nuf2bdangrus (< 20) wrote:

And it can only last so long.  The fuindamentals are negative.

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#2) On March 25, 2008 at 3:46 PM, Zanibel17 (97.65) wrote:

Hey, dwot, remember last August when the Dow dropped something like 300+ points and then regained it all in the last few minutes of the trading day?

That was the day Countrywide announced that it was going to have to go to its $11 billion credit line of last resort.  When the Fed got wind of it, the story goes, they leaked the news that they were going to lower the discount rate the next day, and - voila! - market goes right back up!

I blogged about it here:

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=15740&t=01005040807580616003

I always enjoy reading your posts, btw.  Keep up the good work!

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#3) On March 25, 2008 at 5:38 PM, madcowmonkey (< 20) wrote:

I think this is why some are holding. Corrupt market = me keep my money out of market.

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#4) On March 25, 2008 at 6:04 PM, dwot (49.32) wrote:

The other thing that turned the market around then was Carlyle buying $21 billion in mortgage bonds, I believe, and how long before that tanked and took $700 million of investor's money?

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#5) On March 25, 2008 at 6:20 PM, ATWDLimited (< 20) wrote:

Fed can manipulate, China can manipulate, with is massive reserves, hedge funds can and as well as sovereign wealth funds.

The market does act weird, maybe the government has its own rogue traders pushing the market up, who knows. All I know is go short term for upside picks for april rally, thank prepare for May crash.

Thats my 2 cents, oh wait the feds cuting the rates again ok, my 1.5 cents.

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