Hot money equates to price manipulation.
It is undeniable that the markets are currently experiencing unprecedented levels of manipulation. Price manipulation has been a recurring issue that we have addressed numerous times. However, we are presently witnessing buyers seemingly emerging out of nowhere whenever the market experiences a pullback.
Previously, Yahoo did not display Dow Futures data on their finance home page. Yet, now they always present this data, and as the Dow closes, they switch to the futures data. This psychological tactic aims to convince people that resisting the market is futile. There are surreal activities taking place in the futures markets.
On Wednesday, significant block orders to initiate long positions suddenly began appearing during the market downturn, causing the markets to reverse course. This has been occurring ever since the markets hit rock bottom. Under any other conditions, except for the present bull market, the market would have relieved some pressure and put a higher low.
However, the Fed, or whoever is manipulating the markets, does not want that to happen this time. This begs the question: why? Without any intervention, the markets would have declined significantly, and the Fed is apprehensive that the March lows could be surpassed. Therefore, they want to penalize anyone attempting to short the market so severely that they will give up entirely. There has never been a period where bearish sentiment has remained pessimistic for weeks while the markets continue to rise without releasing any pressure.
As previously mentioned, we anticipated that the Fed would drive the masses towards speculation, but the speed at which they move has even slightly surprised us. While we predicted a robust counter-rally, a market cannot simply keep climbing a wall of worry, especially with many factors at play. At the very least, the market should release some steam.
The Fed Fosters Boom and Bust Cycles
Updated Dec 2022
Any Con requires two players, the conman and the victim. Until the victim wakes up, the con will continue. Sol Palha
The Fed’s primary objective appears to be destroying the middle class while making life harder for the poor and vice versa. The notion that the Fed is needed for market stability is utter nonsense. Unfortunately, it’s futile to address the apparent truth. The top and bottom players are responsible for this deception, as every con requires a conman and a victim. Until the victims realize this, the con will continue. Their primary tactic is to flood the system with cheap money, allowing corporations to borrow and invest in equities. In turn, the Fed creates an atmosphere where price manipulation is the norm.
This extreme intervention by the Fed indicates that this bull market will skyrocket to unprecedented levels. It might even surpass Tulip Mania, a historical market bubble. As a result, our investment strategy must adapt. We will be more aggressive with the first third of our funds but more cautious with the remaining two-thirds. Expect a significant difference, up to 20%, between the entry points for the first entry price and the subsequent two entry prices.
It’s astonishing how the market is soaring without a proportional increase in bullish sentiment. However, the answer is simple. The Fed has taken the reins and employs whatever methods necessary to elevate the market. Data is no longer relevant as easy money dominates everything.
They have already demonstrated their ability to create one of the largest mass hysterias in the world over a virus that, while deadly, is insignificant compared to the deaths caused by cancer or smoking. Now they have been given the go-ahead to employ this tactic in other areas, and they have chosen the stock market as their next target. Therefore, anticipate witnessing things that have never been seen before. Fiat currency is the source of all corruption, and with this large influx of hot money into the world, one can expect a significant surge in unethical conduct.
Easy Money: A Breeding Ground for Fraud and Price Manipulations”
- “The Connection Between Easy Money and Market Manipulation” by Justin Spittler, Casey Research (2018) Link: https://www.caseyresearch.com/connection-easy-money-market-manipulation/
- “How Central Bank Policies Enable Financial Fraud and Manipulation” by Charles Hugh Smith, Peak Prosperity (2019) Link: https://www.peakprosperity.com/how-central-bank-policies-enable-financial-fraud-and-manipulation/
- “Easy money policies could fuel price manipulation” by Dan McCrum, Financial Times (2016) Link: https://www.ft.com/content/4cc4f4cc-3909-11e6-9a05-82a9b15a8ee7
- “The High Cost of Easy Money: Corporate Fraud and Stock Market Manipulation” by William Lazonick and Ken Jacobson, Alternet (2014) Link: https://www.alternet.org/2014/02/high-cost-easy-money-corporate-fraud-and-stock-market-manipulation/
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