Financials Matter

"It's Not Just About Finance"

“They’re BAAACK”…Kinda, Sorta

I’m talking about the Plunge Protection Team (PPT).

On Sunday the 23rd, we wrote how the PPT was MIA. 

On Monday, after Mnuchin announced he was calling in the PPT for help we saw the largest (Christmas Eve) drop of 653 points in history (and it was only a half-day trading session).

The day after Christmas the DJIA fell another 250+ points early in the day only to surge over 1,116 points upward to close out the day on a high note.

Yesterday we witnessed a 611 point drop early in the day with a strong rebound in the last hour to end up +260 points for the day…another 800+ swing.

What does all this tell you?

For starters:

  1. It ain’t mom and pop driving the markets
  2. The boyz in the “Club” are making fortunes
  3. You should expect more of the same going forward

These are only a few highlights but let’s break these down further for clarity.

  • Mom and Pop are scared spitless and want out
  • High Frequency Trading computer (HFTs) are in charge
  • This will continue until the majority throw in the towel

Do some math with me here.

The HFTs can trade 2,000,000 shares of a stock in a Nano-second, in-and-out.

IF they only make $0.01 cents (ONE PENNY) on the trade they clear $20,000.  If they make $0.10 cents (A Dime) they clear $200,000.

Not bad for ONE TRADE.

Do this numerous times during the day and you’re talking some serious money.

The club calls in “Ringing the Cash Register.”

You see, they don’t care where the market ends up in 2018.  Nor do they care about you.

Their bonuses will be based on the profits they make.

And, as you can see, December has been a gold mine.

Don’t let 2019 scare you out of what will continue to be The Most Hated Bull Market in History.

Read more about it.

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