Belmont Club

By Richard Fernandez

Bio

Get Updates From Richard Fernandez
A Comment About

Midnight Express

May 6, 2010 - 2:40 pm - by Richard Fernandez
Eggplant
2010-05-07 12:50:53

What’s been happening over the last week with the equity markets is interesting. The hallmark of the PPT is the markets go up on bad news in low volume. Typically the PPT pumps money into trash stock to push up the overall averages. Robotrader over at Zero Hedge likes to do the forensics about how the PPT does its thing. However lately the markets have been going down on low volume. Has the PPT run out of money or has legitimate market forces overwhelmed the PPT? Of course the PPT would be anticipating market behavior for many months in the future using their advanced economic models (perhaps this is some sort of weird nonlinear phenomena). Maybe the financial situation has become so pathological that their macroeconomic models are breaking down?