Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Yen Intervention, What a Manipulated Joke the Markets Are!

Stock-Markets / Market Manipulation Mar 19, 2011 - 11:24 AM GMT

By: PhilStockWorld

Stock-Markets Best Financial Markets Analysis ArticleOf course, that’s why we love them, right?  But, sometimes, even when we’re playing along – the manipulation we see is so sickening, we still feel the need to declare SHENANIGANS!  


On Wednesday evening, against all possible logic and on no volume at all – the Yen future ROSE (up is down), blowing past the 79.75 record high against the Dollar that had held since 1995, all the way to 76.65 DESPITE the FACT that it had already been signaled that the BOJ was ready to step in to support the Yen at around 80. 

Why did this happen then?  This is what we call a flush and it’s what the manipulators do ahead of reversals to flush out as many stops as they can.  By triggering the stops of other bullish betters, they force them to sell – lowering their entry price and by triggering new, lower levels, they also entice short player to take up new positions.

Why is this a good thing?  Because this adds two kinds of fuel for the manipulators on the way up. The short players who get tricked into following the move are forced to cover (buy) as their stops get hit in the other direction and also, the buyers who got stopped out on the way down have to scramble to get back in.   

This is a very powerful move and keep in mind the advantage - the people who are doing the flushing are not "throwing away money" to make it happen.  They can take up a short position of their own and then engage in naked selling or even legitimately sell longs they hold at panic prices – TO THEMSELVES!  If an operator buys AAPL for $360 in Company A and then sells it for $335 and buy it again in Company B – what has he lost? 

Nothing, he has simply transferred $25 from company A to company B.  If they do this well, they can even create tax losses in both companies on alternate years as well as gains whenever they need a good quarter.  More importantly, it means you can use a relatively small amount of money – especially in the thinly traded futures markets, to manipulate massive amounts of stocks, commodities or even currencies.  We see this kind of manipulation often enough that we don’t even have to wait to analyze it – in this case the timing and severity of the move made it pretty obvious – as I said to Members at 5:15 in Wednesday’s chat:

OMG! What the Hell is the Yen doing? 77.75 – a 2% drop after hours. That is completely unheard of. I think they are just busting on people who made the very obvious trade of Yen weakening ahead of BOJ action but WOW! I wish I had the guts to buy off the 78 line but I’m going out and that could be seppuku!

So we could see that the whole thing was BS WHILE IT WAS HAPPENING – yet no action will be taken against the people who committed this crime – and it is a crime as good people who make legitimate, rational bets that the Yen is likely to strengthen based on solid research and reliable, LEGITIMATE information that they were able to gather in the open market have their money STOLEN from them by people who manipulate the market for their own needs.  That is a very sick system people! 

And why doesn’t the government do anything about this?  Ha!  The government is involved in it’s own massive Ponzi scheme with the very same market manipulators (only work with the best!) who are running rampant over small investors – the ones the government is supposed to be protecting!  

Much of the "wealth" in this country (not just this one, of course) is based on Ponzi or Pyramid schemes.  As Pentax pointed out in Member Chat yesterday, the operation of a nuclear plant is a Ponzi scheme because the plant operators are using dangerous, deadly materials that are capable of unleashing hundreds of Billions of Dollars worth of environmental damage (not to mention the cost in human life and long-term health consequences) for their fuel source – ignoring the true cost of the operation based on the VERY FLAWED ASSUMPTION that the worst case won’t happen. 

On top of this, they totally ignore the cost of disposal of the fuel, which remains toxic for A MILLION YEARS. Do you really believe that the Koch Brothers have paid in advance for 1 MILLION years of storage for their toxic waste or do they simply pay the annual cost out of operations while they reap the current profits against a Ponzi scheme that will one day fold when there is an accident or a change in consumer demand or we run out of new uranium to fuel the plant – all things that will happen long before the million years of storage are up.  

We allow these games to be played on so many levels that we are all numb to the consequences.  The global currency scam is just another one of those games, where our governments can have completely irresponsible policies and they get away with it because they can simply print money to balance their books.  They already tax us but, when they print money, they also decrease the value of the money we do have. And not just the money we earned this year but the value of EVERY SINGLE DOLLAR we have saved or placed into assets that are based in the Dollar, like our homes, cars, bonds and, of course, savings accounts.

NOT though, our stocks! Stocks are priced in dollars so when the dollar goes down, the markets will "rise" simply based on the weak dollars we have to buy the stocks with.  The same is true with commodities. So the "investing class" those who are fortunate enough to have so much money that they are able to put some into stocks and commodities – make a fortune while the value of everything the working class slaved their whole lives to scrape together is trashed.  Not just trashed, of course, this wealth is being TRANSFERRED from the bottom to the top through this process.  

This is not "Commie talk" people.  If you are not one of the Forbes 400 you are either a victim or a victim-in-waiting because what do you think the 400 will do when the bottom 90% are bled dry?  Do you think they will suddenly develop a conscience and start sharing?  Just two years ago we saw what happened when the Investment Banks got so rich that they finally turned on each other and that war wiped out Washington Mutual and Bear Stearns (given to JPM), Indy Mac, Northern Rock, Merrill Lynch (given to BAC), Lehman etc.  The fallout from that little spat was the destruction of the Global Economy and another 20% of the bottom 90%’s wealth was transferred up the ladder – just like it was the last time we had a bank crisis – under the Bush I administration.  

This is not capitalism folks, this is a Corporate Kleptocracy (as illustrated by William Banzai):

Now, let’s get down to business, though.  This is the game as it’s being played and it’s all of our jobs to win the game or at least do as well as we can.  I may spout off once in a while in my small attempts to fight the power but when you here the words "fight the power" you are programmed to think that that’s a "radical" idea and that it your job to fight FOR the power and maintain this status quo and when you watch this video – can you relate to what Public Enemy was saying in 1989, at the time of the last Bank Crisis or are these people against you?  

I have a feeling there are about 20M Americans who are having a much easier time relating to this song, 20 years later:  "No we’re not the same – Cause we don’t know the game - What we need is awareness, we can’t get careless.. Our freedom of speech is Freedom or Death – We got to fight the powers that be."  How long will it take before the middle class, who are now the lower class – get as upset as the lower class was about their lot in life? How long can we keep concentrating the wealth of this nation in the hands of the very few before the masses wake up and do more than hold a rally?  

Be very thankful that you can’t relate to the people at this rally.  We are close enough to the top that we are still benefiting from this transfer of wealth.  Like the remora, that attach themselves to sharks and feed well off the scraps, we can benefit by playing along with Goldman’s game but it IS our class, the underclass of the overlords that has to worry about how long this can continue before the bottom falls out.  Don’t worry about Goldman Sachs, JP Morgan, Warren Buffett or T Boone Pickens – they’ll be fine. Just like all the top 1%’ers who fled Egypt while Mubarak took the fall – they will just set up shop in another nation – there’s always room for one more when that one more has Billions of dollars, right?  

So let’s enjoy the nonsense while it lasts but let’s also think about where this is all going to end.  Like all good things, it will come to one…  

Have a great weekend

Phil

www.philstockworld.com

Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)

© 2011 Copyright  PhilStockWorld - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules