Market Manipulation for profit and political gain.
The market manipulators effect politicians decisions and make a lot of money in the interim. They will run the market down to get day traders and investors to sell and even sell short, then the manipulators buy in and run the market up, short sellers have to cover and the market takes off. This gives the manipulators tremendous profits. The Timing always seems to be when it will give Wall Street and Obama the most advantage to government decisions.
Did you notice in the two months leading upto the deadline of the debt ceiling and budjet vote all government reports were very bad even though July was actually a good month fot the economy. After the vote was finalized the reports were revised up, and reports from then on have been much more optimistic? This is not by accident or coincidence it is planed months in advance.
What do you think they will do to persuade the Federal Reserve?
It only makes sense to have fear and a down market before the fed makes their next decision. The market can run up 50% of the recent losses and have another leg down as big as the first. The DJIA's August run up would be near 12,000 to 12,500 and the bottom (of this cycle) would be 11,200 to 10,500 in mid September. The drop would have to come on fast from the start of the month to give maximum time before the Fed members meet.
This also is near the last month for the market to tank before Obama starts to campaign. If Obama is the master manipulator he would want August or September to be the lowest month so the market has room to run up through his campaign.
I am not saying to get out of the market the first of Sept (even though I will remove 40% of my positions August 30th) because it should rebound after the fed decision. Although If the market hits 12,500 this month it might be good to take profits.