“I think the computers algos have been set up to cause overshoots in signals like IBD to get people making buy and sell decisions and then the markets are reversed – causing a massive squeeze as the newly entered orders are covered and reversed.”
If you believe in a “Plunge Protection Team”, then Friday was a perfect example of what you think is market manipulation, as Intel preannounced terrible numbers and then reversed up 11% in 4 minutes, just as the S&P 500 broke critical support at 1,040 and then went vertical over the next 10 minutes.
Whatever it was, the reversal was anticipated. I have no doubt that the markets are manipulated, especially with Greenspan saying the other day that a stock market rally would do far more to stimulate the economy than any new Quantitative Easing.
The markets are retesting the key July 2010 low, with timing and now have a potential double bottom at 1,040. Resistance that now must be cleared is in the 1,069 – 1,081 area. 1,029 is support.
Expect a meaningful trend to finally be established after the summer holiday season ends next week. Then we will know if the big boys are willing to commit new funds or if they will simply pull their money off the table at what they consider to be artificially inflated prices.
No comments:
Post a Comment