Reply #42: ZeroHedge: The Flagrantly Visible Hand [View All]

[DemReadingDU]

Even people on FoxNews see that the market is being propped up


5/19/09
The Flagrantly Visible Hand
Posted by Tyler Durden at 12:58 AM
Now with a hearty helping of futures manipulation (courtesy of the SLP?). None of this should be news to Zero Hedge readers. The video below from Fox Business News discusses all you need to know about how to prop a market about to crash. Fast forward to 2 minutes and 30 seconds.

video link
http://www.foxnews.com/video/index.html?playerId=videolandingpage&streamingFormat=FLASH&referralObject=5036977&referralPlaylistId=undefined


Transcript courtesy of myprops.

“Something strange happened during the last 7 or 8 weeks. Doreen you probably can concur on this -- there was a power underneath the market that kept holding it up and trading the futures. I watch the futures every day and every tick, and a tremendous amount of volume came in a several points during the last few weeks, when the market was just about ready to break and shot right up again. Usually toward the end of the day – it happened a week ago Friday, at 7 minutes to 4 o’clock, almost 100,000 S&P futures contracts were traded, and then in the last 5 minutes, up to 4 o’clock, another 100,000 contracts were traded, and lifted the Dow from being down 18 to up over 44 or 50 points in 7 minutes. That is 10 to 20 billion dollars to be able to move the market in such a way. Who has that kind of money to move this market?

On top of that, the market has rallied up during the stress test uncertainty and moved the bank stocks up, and the bank stocks issues secondary – they issues stock – they raised capital into this rally. It was perfect text book setup of controlling the markets – now that the stock has been issued…”

http://zerohedge.blogspot.com/2009/05/flagrantly-visible-hand.html