Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Plunge Protection Team Orchestrating a Stock Market Bottom?

Stock-Markets / Elliott Wave Theory Jan 27, 2008 - 02:00 PM GMT

By: Joseph_Russo

Stock-Markets

Best Financial Markets Analysis ArticleA Work in Progress
Well, it is blatantly obvious that the (PPT) plunge protection team, presidents working group – or whatever they call themselves - found it necessary to intervene in the free-market in attempt to orchestrate a bottom.

Where are these guys when markets are a boiling-pot of unsustainable parabolic animal spirit? We suspect during such episodes, they are patting themselves on the back for planting the seeds for such bullish orgies


Massive Undertaking / Will it be Different this Time

Might the inordinately early rescue efforts (which began pre-Dow 14K, in August of '07) be telling of the sheer size and scope that this particular bail-out requires?

This alone, may suggest that any short-term temporary political stimulus (even alongside the redundancy of emergency monetary policy interventions) may do little to mitigate what is quite plausibly a much longer-term systemic malady.

When does Change become Revolution

Given that both Democrats and Republicans are in general agreement (prompting both to mount strong campaign platforms of “change”) that a critical portion of our government is fundamentally broken, we wonder how each candidate would define accomplishing “true-change” without radical consequence? Perhaps this may be why (R) Ron Paul is being ignored like the plague by his opponents and mainstream media alike.

In our view, the century for tweaking status quo paradigms has past. The 21 st century demands a bold new sustainable vision of truth, preservation, prosperity, and security. Anything less equates to re-arranging the deck chairs on the Titanic.

We suspect change-denied, becomes revolution when a failing government's inevitable last band-aid-fix and race-against-time falls terribly short - prompting masses of regional populations toward revolt, and general civil unrest as a result of acute and sustained levels of economic pain and hardship.

Following this week's short-term trading summary, we will provide an update of our big-picture overview to monitor just how well the powers-that-be are executing their efforts to incite and orchestrate a perceived bottom.

Trading amid Intervention

How should traders and prudent speculators deal with massive government interventions in the supposed free-markets? Should they immediately get-long the intervention bandwagon, or should they stand pat on shorts, in attempt to fade the omnipotent fed?

In our view, the answer is none-of-the-above. Despite exerted efforts to manipulate markets, the short-answer is to simply trade the price-action as it is presented – contrived, fraudulent, or otherwise.

Short-Term Trading Environment: Week ending 25-Jan.

Last week's trade was frantic, excessive, and extremely volatile. The highlight was Wednesday's 600-point daily range-reversal off a retest of Tuesday's lows. We warned traders in advance to anticipate potential for larger drawdowns and the likelihood of larger potential losses amid the ongoing melee.

Re-Capping last week's trading points:

It was apparent on Monday's market Holiday that trade would open the shortened week with a significant decline.

Though markets were likely on path to putting in a near-term bottom on their own, the emergency intervention efforts simply sealed the deal, and set the stage for Wednesday's deep re-test and hyper-reversal to the upside.

The Near Term Outlook already had sell-side positions in place from the previous week, many of which achieved downside price target objectives amid Tuesdays sell-off.

We had also been anticipating and actively probing for a near-term low. Tuesday was no exception, as buy-side probes were quantified per our evening report posted the previous Friday.

Yes indeed, we faded the initial intervention rally on Tuesday to capture 300-pts of intraday profit near Wednesday's lows, while our longer time-frame buy-probes off bottom continued un-stopped.

The mega-reversal rally on Wednesday also triggered at least two additional short-term long-positions, one of which has already reached a rather profitable price objective.

By Thursday, we were back in what appeared to be a business-as-usual “levitation” mode, which often follows major price spikes, especially when fostered and mandated by “the fed.”

Ignoring such political acrobatics, our discipline called for a short-term sell-side position which was indeed stopped for a loss on Friday's marginal new high.

With our usual resolve, the follow-through high on Friday open was also faded with three separate sell-side trade-signals – two of which have already achieved their downside price objectives on sustained weakness through the close of the week's final session.

All said and done, we grabbed well over 1300 points from the Dow by week's end - with one long and two short positions still actively working.

Below is graphic summary of this week's trade-triggers identified via Elliott Wave Technology's Near Term Outlook .

The Broad market update (big-picture)

On a grand-scale, major equity indices (with the assistance of massive interventions) are trying to recover from key-minor support level breaches. They are fast approaching a time frame in which a swift and forceful recovery must be sustained in order to re-claim and salvage investor confidence for the long-haul.

Should one have interest in subscribing to our long-term technical analysis and/or acquiring access to our proprietary short-term market landscapes, we invite you to visit our web-site or blog page for more information.

The Near Term Outlook covers the short-term Dow, S&P, and NDX five-days-per-week, and issues near-term updates for the Dollar, Gold, Crude Oil, and the HUI two times per week.

Trade Better / Invest Smarter...

By Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Copyright © 2008 Elliott Wave Technology. All Rights Reserved.
Joseph Russo, presently the Publisher and Chief Market analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program.

Joseph Russo Archive

© 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