San Diego Housing Bubble News and Analysis

It has to be a Government conspiracy. One that involves losing our freedom, the demise of the dollar, emergence of the Amero currency, Government confiscation of property, future higher oil prices, and greedy CEOs making profits.

Smart money assuming position - the Monday is 06/01 - after that only one more month until the second half recovery. Hang in there.

I'm not complaining. Beats going -100 in the last 30 mins that we had a few times in the past. Now if only Courtney Love would pay her damn American Express bill, i'd be a happy camper... Just kidding of course.

The final 30 minute pop is pretty usual. It's one of two things. EIther hyper-dimensional reptilian beings using mind control or Goldman Sachs quant funds that control 1 in 10 trades on the NYSE. Take your pick.

http://zerohedge.blogspot.com/2009/04/go...
This is getting surreal. Goldman principal program trading is now well over 5x compared to its customer and agency trades and a 150 million share pick up compared to last week. For yet another week, Goldman's principal trading represents more than half of all NYSE member firm principal transactions.

The people demand Cuomo and an end of market manipulation.

http://zerohedge.blogspot.com/
As for today's market close, with a literally parabolic jump in the last minute of trading, if anyone still thinks this market trades based on anything resembling normal behavior (unless someone had a very Jerome Kerviel-esque fat delta hedging finger or one/two moderate/large quants who had a huge index hedge imploded), I have some BBB+ rated CMBS to sell to you at par. One culprit could be hiding in the huge drop of agency trading, which this week dropped to a several month low of 1.875 billion shares.

Going back to today's ridiculous close, the chart below shows it all: the complete tape painting volume spike at the very end of the day speaks for itself. And as computers now simply issue forced stock recall orders to each other, painting the tape wet with manipulative intent and volume spikes into the last 20 minutes of trading every day, their human creators are left on the sidelines, trying to outshout each other as to the reason for why the market keeps rising while the economy keeps tumbling.

Pay no attention to the man behind the curtain who's ass is hanging out...

There are a couple of things that cause this type of close. First the month end mark up has a good up bias on the 21st trading day of the month, this is due to what positions funds want to show at months end. You need to have the big gain stocks in your portfolio at months end even if it means you bought them in the last 30 seconds. This is called Window Dressing in the street Jargon.

Second, the PPT is very active at certain times and whenever you see Goldman very active in program trading that is most likely the PPT, they have an account there rumor has it. When you see that skew in their program trading, they are doing the governments manipulation work. They know how bad things are out there, but they need to keep this market up to help sell the story about how much good their actions are doing.

PPT has been around for awhile, and this is how you spot them at work, look for end of the day saves particularly on down days, but this was also the PPT at work. Now that the government has more control over GS it helps them conduct their futures program manipulation at times when they want to do it. GS was also one of the big firms that had the CIT fund accounts that helped manipulate the price of Crude up last year, ducking the CFTC guidelines that would normally apply to Large Speculators by getting commercial status under the CIT label. This allowed them to have unlimited position sizes like commercials have and enabled them to push prices to a ridiculous level.

Commercials are afforded that status due to the hedging nature of their operations, so when the govt mistakenly gave these funds that designation they set the stage for what happened. Of course they then cried foul and blamed the speculators! An acquaintance of mine went before congress to explain all this to them and of course they dismissed him once they realized he was more on top of what had happened than they thought.

This allowed them to have unlimited position sizes like commercials have and enabled them to push prices to a ridiculous level.

Of course a stagnant supply for four years and increasing demand helps too. Chin-India increased there usage by over 8-9 million bbl per day with no aggregate world increase in production. With an elasticity of 15%, prices could be justified by fundamentals as well. But who's paying attention to that?

maybe, but the PPT is supposed to as the legend goes squash gold and gold mining shares, which are on a tear lately...so, i don't know. the market goes up and down.

All major index are near major resistance (200MA, 38.2% FIB etc). With the recent rout in Treasuries, if the market turns town from here, it will be the next big leg down. So it is extremely critic to break out above the resistance so that the market psychology is changed to a definitive Bull which will squeeze all the shorts and bring in huge amount of sideline money. Futures are now above 200MA. S&P500 is expected to break 200MA next monday. So if PPT indeed exists, this is the best time it can intervene with relatively small amount of money.

Another possibility is that a major play (like a hedge fund) was forced to close its significant shorts, for some reason. We will know more if this is the case in the coming days.

I suspect the 'support' we are seeing is the closing of short positions. The 'Wall Streeters' like their summer breaks (not all take them though) and most of them don't like open positions when they are on a break (particularly margined and short positions). I suspect that after June, we may get volatile because many of the 'players' will have left for the summer, so overall volume will be weak and it will be easy for the remaining players to move the market.

That said, it may also depend upon how well the 'Wall Street' players did during the year.. on whether many do take the summer break.... in the Hamptons...

On second thought....

PPT doing damage control on GM BK for tomorrow?

http://finance.yahoo.com/news/GM-prepare...

(though it was expected I would guess)

I thought the same flu... Are we starting to see the man behind the curtain? Or are we seeing only what he wants us to see?