26 replies to this topic

[TechMan]

One of the most frequently referenced attributes for this perfidious market has been “They”. “They” will keep the market up, and “They” will keep the market down. Or, “They” will keep the market going sideways. Since “They” played such a vital role in the currency, the equity, the commodity, the bond markets, etc. all over the world, perhaps we should find out who “They” really is. And, maybe next time I could also blame it on “They” as well.

[Rogerdodger]

O please. THEY are the ones in control. I think.

[NAV]

It's "they" who are responsible when the market goes against you or when your TA does not work. Whenever i have asked evidence for "their" existence, i have been called naive. My quest continues....

[TechMan]

Whenever i have asked evidence for "their" existence, i have been called naive.

I guess that makes two of us...

There seems to be a "They" in every business.

[IYB]

"They" are the explanation for anything that one does not understand. For example, today from Zero Hedge:

"How do you prevent a 5% drop in a month (which as Credit Trader points out is precisely what the last minute ramp achieved)? A reader explains:

approx 175k ESU0 traded between 3:59 and 4:00 - $9.1B notional. in the 16 minutes between 3:59 and 4:15 just under 300k contracts traded total (12% of full day / overnight volume --- 200% of the previous 5 trading days) for total of $15B notional"


In other words "They" spent $15 Billion real American Dollars to be sure that the SPX didn't close August down 5%. If "They" is the Fed, then "They" have the most tight lipped perfect little soldiers the world has ever seen keeping "Their" secrets from the world. If "They" is a bunch of instititutions working in concert to manipulate markets, then my congrats even more so on their ability to mastermind this stuff in complete 100% secrecy from the world. Now all "They" have to do is figure out how to unwind what they did in the last minute today, and decide who gets what out of the unwinding.....

I wonder if those who keep telling us what "they" are doing ever consider that on a day like today when institutions know that there should be new money coming in tomorrow, that the easiest way for them to try to get the jump on their buying tomorrow is simply to shove some money in at the close today in FUT's then sort it out during the day tomorrow what stocks they buy? That the ramp was just a bunch of managers acting independantly in their own self interest and they log jammed the market in the run-off today? Or that each of the spikes and nosedives have similar explanations having to do with mass psychology rather than "They" stepping out from their shadows and manipulating in concert?

Naw! On second thought, it was "They". I'm now sure of it....

[arbman]

Most of the time "they" means the central banks in my vocabulary.Today, I think the money at the end of the day came from one institution mainly and that one institution got its "go ahead" from Fed and sure a bunch of hedge funds acted too. There was also a short stops running and buying as the sell off was not able to push once again below 1040. In general, I believe the herd is controlled by a few major players, when they act sufficiently large enough especially in the leveraged markets, the rest of them follows their leader...

D, I will be watching with great interest what they will be buying tomorrow after this fresh injection though, best...

Edited by arbman, 31 August 2010 - 10:59 PM.

[Data]

They rally the markets when the President or the Fed chairman gives a speech.

[IYB]

Today, I think the money at the end of the day came from one institution mainly and that one institution got its "go ahead" from Fed

Why would they need to ask the Fed whether they can or cannot buy futures? Or are you suggesting that they are simply a "shill" for Fed money...that the Fed routinely buys and sells Spooz? To me this whole subject is just simply nuts. The Fed does not trade stocks and futures. It's just a silly myth. But that's jmho.

Meantime though, I, too am interested to see what "leads" tomorrow. I've been following your thoughts on that with great interest, and absolutely agree with you that the vacuum in quality leadership here is a major negative for markets. Thanks Arb and take care, D

[Rogerdodger]

"WE have met the enemy, and THEY is us."

Pogo's Walt Kelly, Earth Day poster 1970.
Earth Day, AKA Vladimir Lenin's birthday.

Edited by Rogerdodger, 31 August 2010 - 11:38 PM.

[arbman]

Today, I think the money at the end of the day came from one institution mainly and that one institution got its "go ahead" from Fed

Why would they need to ask the Fed whether they can or cannot buy futures? Or are you suggesting that they are simply a "shill" for Fed money...that the Fed routinely buys and sells Spooz? To me this whole subject is just simply nuts. The Fed does not trade stocks and futures. It's just a silly myth. But that's jmho.

Meantime though, I, too am interested to see what "leads" tomorrow. I've been following your thoughts on that with great interest, and absolutely agree with you that the vacuum in quality leadership here is a major negative for markets. Thanks Arb and take care, D

Fed absolutely do not buy the stocks, I always said this... They don't need to, their market is the bonds where the liquidity comes from. However when Fed signals that they will print and supply the liquidity, "they" know in advance and run up the futures if the size of the operation is attractive and it is no coincidence that these almost always come when there is more and more bears around.

The leadership suggests this one will too fail, but given that semis are so oversold at the moment, it can generate a decent impulse. Ideally this will be also an one-day-wonder type of rally and it will be mostly or fully given back and perhaps more by Friday's close...

We may still get some low volume action due to the labor day, but most are back to work. So, it should pick up next week and I suspect the volume will take the markets down again. Technically, 1080 is a pause zone for September even if the market jumps over 1060. The bottoming should take the good part of September then unless the bottom falls out...