Let's take a look at some events the last few days. The above chart is the mysterious buyer of the futures a couple nights back, covered by Denninger here, and ZH.
"That's last night.
Over 12,000 contracts traded in two five-minute periods, over 10,000 right up on the time of that spike.
There was no news of any sort related to the US markets on the wire last night. Zero. None. I and many others were wondering what the heck caused that.
This morning, the buying began in earnest at 8:30 Central, and then again at 10:00 Eastern - one hour in front of the "announcement" again on heavy volume.
Where is the SEC?"
The Fed, however, has a new press release Thursday. Anyone think someone had wind of that?
We know that Goldman has significantly ramped their principal business.
And we know that in Wednesday's research, Goldman advised us to buy the secular winners.
Notice what Goldman has to say on page 2 of their research (page 5 scribd) under Americas: Energy: "Pullback provides an opportunity to add to secular winners."
And anyone that trades with Goldman, knows that is their latest buzzword. It's not "window dressing" it's just "secular winners!" Buy 'em!
After all, doesn't Goldman need to unload some paper?
And doesn't Goldman want our market higher, if you own all this paper?
And that's why it can't go down. Because the equity market needs the psychological boost, almost more than the economy does! After all did anyone really read Greenspan's article in the FT today? People thought his article was about inflation. Was it? I think not.
"Global stock markets have rallied so far and so fast this year that it is difficult to imagine they can proceed further at anywhere near their recent pace. But what if, after a correction, they proceeded inexorably higher? That would bolster global balance sheets with large amounts of new equity value and supply banks with the new capital that would allow them to step up lending. Higher share prices would also lead to increased household wealth and spending, and the rising market value of existing corporate assets (proxied by stock prices) relative to their replacement cost would spur new capital investment. Leverage would be materially reduced. A prolonged recovery in global equity prices would thus assist in the lifting of the deflationary forces that still hover over the global economy.
I recognise that I accord a much larger economic role to equity prices than is the conventional wisdom. From my perspective, they are not merely an important leading indicator of global business activity, but a major contributor to that activity, operating primarily through balance sheets.
Stock prices, to be sure, are affected by the usual economic gyrations. But, as I noted in March, a significant driver of stock prices is the innate human propensity to swing between euphoria and fear, which, while heavily influenced by economic events, has a life of its own."
And that's the justification, to rig the market, with the imprimatur of the former Chairman of the Federal Reserve.
Now as everyone knows, I'm out there with my bullishness.
But those on inside, are working to keep it that away.
Even if they need to manipulate the markets, and trade on information no one else has!