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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA
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To: Lizzie Tudor who wrote (15216)12/2/2002 1:18:31 PM
From: ahhaha  Read Replies (2) of 19219
 
Let me explain the evolution of the "PPT".

During the late '70s when little boy Steve was still saying goo goo the FED and several major banks formed an informal working group in order to address unsystematic volatility in certain markets. "Certain" is limited to dollar and other currencies, Tbond, ancillary debt markets, never the stock market or commodities markets. The rationalization behind this formation was the same prime rationalization for the creation of the FED in 1913 and that was to prevent chaos.

LTCM was a development where PPT-like action was taken, but it never involved the so-called PPT. FED called on the money center banks only to find out what they knew, but initiated action on its own. FED didn't take this action in order to manipulate prices, but to manipulate psychology away from fear. It wasn't the change in price that calmed markets, rather it was the FED's presence in markets that did.

Since the mid '80s the existence of this working group was used by bears as an excuse to explain every upside move in markets that had nothing to do with actions the group may have taken. Indeed, the group has never taken any action. All action for the last 20 years has arisen exclusively from the FED. When the FED came in after LTCM and pumped no one called that an action of the "PPT", so was it? Was the pumping related to LTCM or was it in response to the Asian Crisis?

When clowns like Lee make this claim that the PPT is operating, what they're seeing is the result of rabid traders wildly making random decisions based on specious indicators. Just challenge them on their evidence. They don't have any except their fear. Do the clowns ever say the PPT is operating on the sell side when markets rise? Where is the PPT when gold and oil plunge? At what price change do the clowns start claiming the PPT is operating? The inventors of the PPT myth use it just like the inventors of conspiracy. It's a convenient way to show their fear and to try to off load that fear on others.
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