Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Fake Markets and Return of the “Plunge Protection Team”

Stock-Markets / Financial Markets 2019 Jan 01, 2019 - 03:36 PM GMT

By: MoneyMetals

Stock-Markets

It’s amazing what passes as a market these days.

Stocks rallied during the Christmas week, and the mainstream financial press would like you to believe bargain hunters swooped in after the weeks of heavy selling to grab some deals. The truth is there are very few actual people still evaluating the merits of publicly traded companies.

The markets are driven by programmed trading and central planning. The artificial nature of markets was on full display last week.


Let’s walk through the series of events...

Steve Mnuchin called the CEO’s of the six largest banks in America on Sunday, December 23rd. The next day, Christmas Eve, Mnuchin held a conference call with the Working Group on Financial Markets – aka the “Plunge Protection Team.” Perhaps most of these people were away from their desks, because the DOW promptly plunged 650 points.

It appears they were back in the office and ready to go by Wednesday. The DOW rallied almost 1,100 points when trading resumed after the Christmas holiday. It was the largest single-day point gain in history.

There are currently 505 stocks in the S&P 500 Index. 504 of them closed higher on Wednesday. So which stock was the one that fell?

It was Newmont Mining (NYSE:NEM) – the only precious metals miner included in the index!

That kind of movement in markets is not driven by swarms of unique investors evaluating the merits of several hundred individual firms and making independent buy and sell decisions.

It looks more like what you get when a tiny group of Wall Street bank CEOs and the Plunge Protection Team get urgent phone calls from the Treasury Secretary with serious concerns about falling stock prices.

Given the prevalence of algorithmic trading and the mandate Fed bankers have claimed to constantly intervene, U.S. markets may be just as artificial as those in Russia at the height of Communist control. Soviet bureaucrats set the price of wheat back then. U.S. bureaucrats and bankers control the prices of stocks and futures market contracts now.

Retail American investors are being deliberately trained. The lesson is that stocks have a limited downside and unlimited upside. They should always buy certain favored assets – and buy more on every dip.

Central bankers and Wall Street CEOs are working together to keep the bubble growing in stock prices and they have given up being discreet about it.

Last week’s moves were intended to inspire confidence. For those of us who still care about free markets, they had the opposite effect.

By Clint Siegner

MoneyMetals.com

Clint Siegner is a Director at Money Metals Exchange, perhaps the nation's fastest-growing dealer of low-premium precious metals coins, rounds, and bars. Siegner, a graduate of Linfield College in Oregon, puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

© 2019 Clint Siegner - 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.


© 2005-2022 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