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strange end of day action



June 01, 2009 – Comments (7)

today in the very last minutes of close some strange selling off occured in many big names.

BAC dropped 3% in the last minutes, finishing down for the day at 11.21 after being 11.50 just minutes before close.

DOW dropped more than 4% in the last few minutes finishing well down for the day at 17.10 after being 17.80 with just minutes to go.

WFC gave up 2% in the last couple minutes and finished down.

USB gave up 2% in th elast couple minutes.

MS gave up 2% in minutes.

GS dropped almost 2 bucks in the last couple minutes.

JPM dropped 4% in the last 15 minutes of trade.

And on and on.  Somebody took a big nasty short out on financials at the end, or closed out a big long position or something.  I've not noticed anything quite like this before.

7 Comments – Post Your Own

#1) On June 01, 2009 at 5:43 PM, ChrisGraley (28.73) wrote:

Plunge Protection team unwinding some positions while pumping other stocks.

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#2) On June 01, 2009 at 5:51 PM, goldminingXpert (28.89) wrote:

JPM had a new share offering and insiders were dumping all the banks ahead of it. Combined with the news that all the banks have to hit up the equity market before repaying TARP (more on this here) and it's no surprise that the smart money went scurrying out of the banks before the nuke goes off. XLF was up all of 1 penny today according to the latest AH quote.

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#3) On June 01, 2009 at 7:50 PM, ChrisGraley (28.73) wrote:

That can't possibly be it GMX.

Bank stocks only go up on offerings in the bizarro market!

See BAC.

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#4) On June 01, 2009 at 9:37 PM, OtherOracleOfOMA (29.80) wrote:

If you pay close attention, you'll often see "painting the tape," meaning that market participants already holding positions on a security (or securities) will put in a big order right before the market closes, so as to make it seem as if there was a big up or down day. The idea is that the "tape" at market close will create the psychological conditions for other traders to pile into, or dump, the security the next day. The "painter" then gets out, and viola - unearned, ill-gotten, and undeserved profits. Ah, all the ways in which the financial cartel manipulates the markets...

Then, after market close the next day, the parasites participating in the scam all go out to a high-end brothel and talk about how they feel that they're entitled to never pay taxes or submit to government regulation.

Maybe they've got a point too - I mean, after all, what would we ever do if such Atlas-type figures decided to "shrug," and the derivatives market and speculative hot-money flows were shut down? Never mind that Article 1, Section 8 of the US Constitution deems Wall Street's derivatives trading unconstitutional, without the derivatives market, where would wealth come from?!

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#5) On June 01, 2009 at 11:13 PM, JGus (28.23) wrote:

The VIX was also up nearly 4% today in spite of the huge rally.

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#6) On June 02, 2009 at 12:43 PM, checklist34 (99.06) wrote:

the ^VIX is toying with 30 again... 

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#7) On June 03, 2009 at 6:26 AM, BullMktAg (41.59) wrote:

I understand the purpose of the VIX, but why is that 4% rise significant?  What does it mean to investors?

Do you think this is a pump and dump, or whatever you want to call it, or is it indicative of a major pull back from big money?  Is today the beginning of the end of this rally?  I mean, especially after the S&P 500 breaking the 200-DMA, it seems like everyone expects this thing to keep chugging along for the foreseeable future.

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