How's this for possible market manipulation?

[c1ue]

Check out this link:

http://finance.yahoo.com/q/ta?t=1d&s...EIXIC&c=%5EDJI

Note the coordination between FNM and JPM, and to a lesser extent C (vs. the Dow Jones Industrials, Nasdaq, and Apple).

Fannie Mae started out the day positive and stayed there the whole time.

At 1:30pm - unfortunately the volume numbers aren't showing anymore - a wave of buying ensued.

Tin foil + Leadite (tm Spartacus) time?

I got my Apple puts sold, but I was too spooked by this to put in the rebuys...

[lobodelmar]

Re: How's this for possible market manipulation?

I think you might have mild lead-ite poisoning...

Tell me why it wouldn't make sense that these financial-related stocks show correlation?

[c1ue]

Re: How's this for possible market manipulation?

FNM was up from the get-go despite negative earnings comparison.

I thought last night perhaps it was an oversold bounce coming after the S & P hit support at 1375, but today I think it is more likely those in the know acted on the Fed action today.

Note that a number of companies - including in the Goldman Sachs call - predicted exactly such a Fed action.

[c1ue]

Re: How's this for possible market manipulation?

From:

Source:
Has the Fed Secretly Cut U.S. Interest Rates?
Markets Wonder As Federal-Funds Rate Lingers Below Target
DAVID WESSEL in Washington, LAURENCE NORMAN in New York, ENDA CURRAN in Sydney and MICHAEL S. ARNOLD in Tokyo
WSJ, August 16, 2007 2:25 p.m.
http://online.wsj.com/article/SB118726976751399608.html

Originally referred by:
http://usmarket.seekingalpha.com/art..._email&u=88714

The Fed's primary weapon is its influence over the federal-funds interest rate, at which banks with excess reserves lend to banks that are short reserves. When demand soared last week and the market interest rate rose above the target, the Fed pumped in extra cash. But in times of turmoil, it can be difficult for the Federal Reserve Bank of New York to fine-tune its interventions. In recent days, the rate has traded well below the Fed's target at some points of the day -- even coming close to zero at times. That has prompted some in the markets to deem this "a stealth Fed easing."

Note the time of the article publish date.

It appears that rumors (or not rumors!) of Fed action may indeed have been the reason why stocks corrected up starting at 1:30pm on last Thursday.

[jk]

Re: How's this for possible market manipulation?

announcing the discount rate cut just before options expiration magnified the effect.