After yesterday's market slaughter, Today started off with a similar falling knife in the Indices as hundreds of individual stocks lost value, but someone with funny money is buying these falling knives with a vengeance, and it's almost sad to watch in real time as the index bounces up and down by large amounts (at least while I was watching).
Why do I say these are plunge protection teams? Simple, only an idiot buys a falling knife, or someone with bottomless pockets. This in turn would indicate yet again that there is no real price discovery in the US Markets, nor even the Canadian markets, although the TSX isn't getting the special treatment quite as much.
the S&P is fairing better than other indices, at least as far as moving averages are concerned. The Dow, just as I had anticipated fell to the 200-day moving average, and it fell even further before someone started catching the falling knives. Of course, I'm not psychic, just a little hindsight bias on my part. What's truly amazing is that the stock market manipulation is done in such a brazen and open manner, 100% focused on short-term survival while piling on the debt for future generations and administrations.
S&P500
Dow Jones
TSX
For contrast, here is the German DAX and what you would normally see without manipulation in this global economic environment.
Thanks for reading. stay safe and keep your head up.
