Easy Money Environment Fosters Price manipulation

Price manipulation

Hot money equates to price manipulation

There is no doubt that the markets are being manipulated at an unprecedented rate. Price manipulation is not a new issue we have spoken of this many times, but right now, one can see that buyers emerge from nowhere when the market is pulling back.

Yahoo never used to put up publish Dow Futures data on the finance home page. Now they put up the data all the time, as the Dow closes, they revert to the futures data. This is a psychological ploy to prep individuals in believing that resistance is futile. There is unreal action taking place in the futures markets.

On Wednesday when the markets were tanking suddenly large block orders to open long positions started going through, and the markets reversed course, this has been going on for since the markets bottomed. Under any conditions except for the current bull, the market would have let out some steam and put in a higher low. However, the Fed or whoever is playing with the markets does not want that to happen this time. Which begs the question why? Without intervention, the markets would pull back firmly, and the Feds are nervous that the March lows could be taken out, so they want to punish anyone that attempts to short it with such ferocity that they will all but surrender. There has never been a period where bearish sentiment has remained negative for weeks on end while the markets continue to soar without letting out any steam.

As we stated before the Fed would force the masses to speculate, but the speed at which they are moving has even surprised us a bit. We expected a strong counter-rally and spoke of this, but a market does not just keep climbing a wall of worry when there are so many factors at play. At the very least it should let out some steam.

The Fed Fosters Boom and Bust Cycles

One of the Fed’s primary functions is to destroy the middle class and to make the poor more miserable and vice versa. All that nonsense about needing the Fed to provide market stability is a load of hogwash. Again, there is no point in wasting precious time in dealing with the obvious. Nothing can be done to stop these chaps for the bottom players (the crowd) are just as complicit as the top players. Any Con requires two players, the conman and the victim. Until the victim wakes up, the con will continue. Their primary ploy is to flood the system with hot money and then corporations borrow the money on the cheap and invest in equities. In doing the Fed fosters an environment where price manipulation is the norm.

This insane intervention by the Fed also informs us that this bull will indeed soar to unimaginable heights. It could very well end up becoming the modern version of Tulip Mania. Therefore, this calls for a change in strategy. We will be a bit more aggressive in terms of deploying the first third of our funds but more conservative with the remaining two thirds. Don’t be surprised if you see a difference of as much as 20% between the entry points for the 1st entry price and 2nd and 3rd entry prices.

How can a market rally so sharply without are surge in bullish sentiment. The answer is simple. The Fed has taken over and is doing whatever it deems necessary to push this market higher. The data no longer matters as easy money controls everything.

anxiety index tactical investor

They already proved that they could create one of the world’s biggest mass hysterias over a virus that while deadly pales in comparisons to the deaths caused by cancer or smoking. Now they have the green light to test this ploy in other areas, and they have decided that the stock market is the next target. Hence expect to see things you have never seen before. Fiat is the root of all evil, and with this much hot money flooding, the world once can expect a massive surge in immoral behaviour.

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