wndysrf Posted July 8, 2003 Report Share Posted July 8, 2003 We are currently witnessing unheard of behavior in the financial markets in real time. Historically, the markets have always won. Governments who try to bend the market in one direction or the other usually get blown out. But this time its different. This time, the Participants have proven that for the moment, they are larger and more powerful than the market itself. We have seen it with the successful BOJ ramping of the Nikkei from the lows. We have seen it with the incredible bounce back in Uncle Buck. We have seen it with gold getting trashed time after time. We have seen it with the Global Equity Indexes melting up from the lows via constant intervention. We have seen a mania repeat itself, with the same sectors leading again. Today's Wall Struck Journal provides a detailed accounting of how the BOJ has pulled off the incredible feat of suppressing the yen by essentially faking out the Arena Participants and getting the Wildebeast Herd moving in the desired direction: "In ordinary yen-selling intervention, the Finance Ministry, through the Bank of Japan, asks a private bank to buy a certain number of dollars for yen at a price designated by the ministry. The bank places the dollar-purchase order in the market, and when the market transactions are completed, the ministry pays yen to the bank in return for the dollars, resulting in the transaction being recorded in the ministry's records." But now the BOJ has figured out how to get the greyhounds moving without having to enter any transaction in its records, thereby intervening by fakery instead of actual buying or selling. "With the new method, Tokyo relies on other banks to catch on to the fact that one bank is buying dollars for yen on behalf of Japanese authorities. The other banks start buying the U.S. currency, jumping on the bandwagon of an intervention-inspired dollar rise. The ministr can then simply abandon its order, as its aim to of strengthening the U.S. currency has been met. Because the order is cancelled, it isn't recorded in official data." "The technique takes advantage of the fact that currency traders often realize that intervention is occurring because of the huge size of the transactions, even if they themselves don't get the intervention orders from the Bank of Japan. That gives Tokyo cover if other governments criticize Japan's reliance on engineering a weak yen to spur economic growth." So there you have it. Manipulation without manipulation. A trillion dollar market, easily manipulated by one Central Bank, which doesn't even have to bother with actually executing a buy or sell order. Just another example of the Alice in Repoland market works, where anything is possible. Link to comment Share on other sites More sharing options...
machinehead Posted July 8, 2003 Report Share Posted July 8, 2003 That's just spoofing, the technique on Nasdaq Level II where you enter a big airball bid or offer to get the market moving in that direction, then jerk it away before anybody can hit it. Some of the kids on the BOJ currency desk are probably former zaiteku day traders. Link to comment Share on other sites More sharing options...
Guest yobob1 Posted July 8, 2003 Report Share Posted July 8, 2003 Historically, the markets have always won. Governments who try to bend the market in one direction or the other usually get blown out. But this time its different. This time, the Participants have proven that for the moment, they are larger and more powerful than the market itself. For the moment indeed. Reality will always win, and it will this time also. The never ending question is always when? I don't know, but then neither do you. I have my suspicions that reality is soon to rear it's now ugly head, but frankly I don't care if it's today, tommorrow or next year. When it does happen I still think it will be swift and very painful. There will be no reaction time available for the masses, no time to get their house in order. Judging by some things written here recently, I am surprised by the lack of preparation by most stoolies. If we're the "smart" ones that are ready for any eventuality, then God save the rest, cause they're smoked meat on the barbie. Link to comment Share on other sites More sharing options...
Flaming Turds Posted July 8, 2003 Report Share Posted July 8, 2003 Well at least they put gold on sale for us. I had to pick me up one of those maple leafs everyones been talking about yesterday. Also got me an assortment of others. Its nice to have some value stored away from the matrix. Link to comment Share on other sites More sharing options...
The End Posted July 8, 2003 Report Share Posted July 8, 2003 Scaled in a bit more on the spx short side right near the close today after selling the longs yesterday at 1004. We may go higher still but, IMHO a pullback for a few weeks is dead ahead. Have a good night. Wanna leave before I say something stoolpid. :grin: Link to comment Share on other sites More sharing options...
machinehead Posted July 8, 2003 Report Share Posted July 8, 2003 Well at least they put gold on sale for us. Yes, the most daring and rewarding high-wire act of all would be to jump off the slowing Nasdaq express train and onto the roof of the Gold train as it overtakes it at a hundred miles an hour. Gotta practice that stunt, so's I'll be ready when the gold ETF debuts. Link to comment Share on other sites More sharing options...
DrStool Posted July 8, 2003 Report Share Posted July 8, 2003 Doc's closing market comment. In general, I have only one thing to add: South Seas Bubble Link to comment Share on other sites More sharing options...
wndysrf Posted July 8, 2003 Author Report Share Posted July 8, 2003 Gold shares held up amazingly well despite the smashing by the Cartel. Sold my energy longs and picked up some more BGO, WHT, CDE, KRY. Upside on those will be far in excess of Riverboating VTSS, PMCS, AMZN, etc. Sold IIJI and ASIA at the close. That was some fast money. But I'm not getting greedy with those. Nasdaq should pullback to the prior breakout area. Over 150 points in 4 trading days is getting kind of ridiculous. I agree with K-Wave. Next target on the Nasdaq is 2000+. BobBrinker mentioned that cyclical bull rallies typically have a habit of exceeding the prior highs by 2% - 5%, so I'll be looking at a top somewhere just over last year's highs. Link to comment Share on other sites More sharing options...
rott Posted July 8, 2003 Report Share Posted July 8, 2003 GBGLF going AMEX. I threw this one the other board and thought I'd add it here. http://biz.yahoo.com/bw/030708/85274_1.html Usually good for pop to due improved volume. Link to comment Share on other sites More sharing options...
Guest Icky Twerp Posted July 8, 2003 Report Share Posted July 8, 2003 NO! Wait! Mr. E...stick around...make some "waves" Link to comment Share on other sites More sharing options...
wndysrf Posted July 8, 2003 Author Report Share Posted July 8, 2003 Over 2 billion in volume today. TomOBrien will likely be foaming at the mouth again. He was bearish last night due to light volume, but today we got the Program Robot Buy Orders in the afternoon that pushed in the volume at the last minute. Check out the huge moves in PSUN, COH, PNRA, KKD, the usual high short interest suspects...... Link to comment Share on other sites More sharing options...
machinehead Posted July 8, 2003 Report Share Posted July 8, 2003 I FOUGHT THE FED (to the tune of I Fought the Law) Margin calls in the hot sun I fought the Fed and the Fed won I fought the Fed and the Fed won I needed cap gains 'cause I had none I fought the Fed and the Fed won I fought the Fed and the Fed won I miss my shorts and I feel so bad I guess my race is run They were the worst punts I've ever had I fought the Fed and the Fed won I fought the Fed and the Fed won Robbin' bears with a six gun I fought the Fed and the Fed won I fought the Fed and the Fed won I miss my puts and I feel so bad I guess my race is run It was the worst loss I've ever had I fought the Fed and the Fed won I fought the Fed and the Fed won Link to comment Share on other sites More sharing options...
Bungster Posted July 8, 2003 Report Share Posted July 8, 2003 I dunno, but why the SOX is going higher is beyond me: http://www.e-insite.net/electronicnews/ind...&spacedesc=news Very little growth is projected. Bungster Link to comment Share on other sites More sharing options...
The End Posted July 8, 2003 Report Share Posted July 8, 2003 Dead kennedy's Dead end Once I had a close friend I knew him for quite a while He seemed alright to me We had this deal together Tied up my money and time And then he went away Taking all that was mine Oh, well, things crumble to an end Hell, we all die in the end Die in the end Once it was fun to worry About who was in control Could look into the future But now it don't seem right Passion is filling the air Profits are better than life And things are harder to bear Oh, well, things crumble to an end Hell, we all die in the end Die in the end It's a dead end Dead end Dead end Once I had a lover I knew her for quite a while She seemed alright to me But then she was gone She took my lovin' and time Taking all that was mine And leaving me far behind Oh, well, things crumble to an end Hell, we all die in the end Die in the end It's a dead end Dead end Dead end Link to comment Share on other sites More sharing options...
Grand Poopercycle Posted July 8, 2003 Report Share Posted July 8, 2003 2 billion? I see 1.33b on Crackdaq ans 1.534b on NYSE. Link to comment Share on other sites More sharing options...
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