Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to lender

[Andreuccio]

Re: Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to len

I was really curious about that 328 point rally. I read an article this morning that Rajiv had linked to:

http://onlinejournal.com/artman/publ...cle_2304.shtml

One sentence stuck in my mind: "Whenever you see a sharp rise of the DJIA right before the close based on no news, you can be sure that the PPT is in action. "

The PPT is explained as follows: "Since about 1989, the Fed has funded a shadowy organism called the President’s Working Group on Financial Markets, more popularly known as the plunge protection team or PPT. This entity intervenes every day to prop up Wall Street’s speculative house of cards. The PPT buys stock futures in Chicago with the goal of up drafting stock prices in New York. As long as the PPT can keep the price of the Chicago future above the price of the underlying stock on the NYSE, speculators and program traders will sell the future and buy the stock, accomplishing the PPT’s goal of generating totally fictitious demand and preventing gaping market breaks where there is simply no bid for stocks offered.
A few billion of futures buying in Chicago can generate tens of billions of buying in New York -- especially when the operation is signaled by Wall Street figures known to be de facto spokespersons for the PPT, such as Abby Joseph Cohen of Goldman Sachs. Once speculators know the PPT is moving in, they can pile on the bandwagon, and realize nifty short-term gains before selling to the suckers before the next dip."


Has anybody heard of the PPT, or are we into tin-foil hat territory? Could they have caused today's rally?

[Rajiv]

Re: Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to len

I think this is more in the tin foil hat category -- a more likely explanation is the selling of index futures by naive investors

[Darin]

Re: Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to len

Perhaps Dead cat bounce?

[Guest]

Re: Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to len

I don't see what everyone finds so unattractive about this little fella. He looks kind of rakish, with a debonair glint in his (remaining) eye?

I must admit "Fugly II" seems somehow mysteriously a good name for him though ... as in "Fido Fugly the Second" or "Freakin' Fugly the Third" - sort of patrician sounding? ...

Put a tux on him, you could take him anywhere ...

[necron99]

Re: Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to len

I was really curious about that 328 point rally. I read an article this morning that Rajiv had linked to:

http://onlinejournal.com/artman/publ...cle_2304.shtml

One sentence stuck in my mind: "Whenever you see a sharp rise of the DJIA right before the close based on no news, you can be sure that the PPT is in action. "

The PPT is explained as follows: "Since about 1989, the Fed has funded a shadowy organism called the President’s Working Group on Financial Markets, more popularly known as the plunge protection team or PPT. This entity intervenes every day to prop up Wall Street’s speculative house of cards. The PPT buys stock futures in Chicago with the goal of up drafting stock prices in New York. As long as the PPT can keep the price of the Chicago future above the price of the underlying stock on the NYSE, speculators and program traders will sell the future and buy the stock, accomplishing the PPT’s goal of generating totally fictitious demand and preventing gaping market breaks where there is simply no bid for stocks offered.
A few billion of futures buying in Chicago can generate tens of billions of buying in New York -- especially when the operation is signaled by Wall Street figures known to be de facto spokespersons for the PPT, such as Abby Joseph Cohen of Goldman Sachs. Once speculators know the PPT is moving in, they can pile on the bandwagon, and realize nifty short-term gains before selling to the suckers before the next dip."


Has anybody heard of the PPT, or are we into tin-foil hat territory? Could they have caused today's rally?

People who are curious about the "Plunge Protection Team" idea need only hearken back to this older post:

http://www.itulip.com/forums/showthread.php?t=1221

also, cited by reference:

http://www.informationclearinghouse....ticle10163.htm

http://www.sprott.com/pdf/pressrelea...isibleHand.pdf

http://www.gata.org/SprottReportTheVisibleHand.pdf

[metalman]

Re: Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to len

People who are curious about the "Plunge Protection Team" idea need only hearken back to this older post:

http://www.itulip.com/forums/showthread.php?t=1221

also, cited by reference:

http://www.informationclearinghouse....ticle10163.htm

http://www.sprott.com/pdf/pressrelea...isibleHand.pdf

http://www.gata.org/SprottReportTheVisibleHand.pdf

they got one of them in asia?

http://finance.yahoo.com/intlindices?e=asia

[Andreuccio]

Re: Nearly 9,000 foreclosed homes sell at auction in CA in July and 95% return to len

Apparently not. Great link, btw.