PPT is on vacation. When you think of the PPT, assume that it is the JPMs, GSs, MERs of the world and that if they buy to prop the market up, then they have to sell at some point.
If there is a "PPT", they are going to be acting in a way that they perceive is beneficial to them. They are going to buy days like Oct 10 because there is capitulation happening. They are buying stuff as cheap as they are going to get it. If you assume the individual firms in the PPT will want to exit at a profit, that's when you can make a case for the mini-ppt action. However, after they have distributed their inventory, you can assume that they have lost their motivation for wanting the market to stay up. They are going to want to buy at cheaper prices. I watch the trin a lot because it gives a hint as to whether institutional distribution or accumulation is happening. They are distributing now.
I believe that if you see something that looks PPTish, that it is just a big fund coming in with a buy program. Remember, there are a lot of 401ks and Pension funds that have to deploy funds. So they will look to do it on dips and it will appear like the PPT is surging into the market.
In other words, I am saying that I believe that a vast majority, if not all, of the action attributed to the PPT is actually just individual firms acting in their own best interest. |
