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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: prometheus1976 who wrote (108255)	5/9/2010 1:29:34 AM
From: rr_burns	Read Replies (1) of 110194

I think he was trying to point you at this: playstocks.net which has an interesting (if slightly overly excited) examination / summary of the plunge on Thursday: Of note: 1) Gold and the ETF GLD did not behave "properly" in the plunge time window. from the link: Gold was heading higher all day and just before the computers went berserk after 2:30, gold had been trading between $1194 and $1198 from about noon hour and at 2:00 it hit $1200. Once the computer sell programs went 'a wall' gold was sold down to $1190, stopped there and in the next half hour quickly went back up to about $1207, by 3PM it was 1208 and hit $1210 shortly after 3PM and then drifted downward with the market in the next hour to about $1205. Surely the automated trading should have spiked gold upwards - at the same time? ( i cannot find a minute to minute GLD chart to compare with or to check the author's statements) 2)Closely related markets (i.e. the TSX - toronto) unprotected by the "plunge protection" intervention mechanisms in the US had a valley "floor" for an additional 15 minutes (at least) of trading. 3)There is something "not right / asymmetric" about the trades that were reversed in the plunge time window ( i.e. not all were reversed) 4)It has the look of the (pen?)ultimate "stop-loss whipsaw" in retail investor terms. A couple of overall observations: - If it was plunge protection that occurred ( to reverse the swan dive) it is a serious mistake to think of it as an "un-stirring of the coffee" which is how a lot of the media play it to us. The reality is that the US$ took off ( unlike gold), oil fell ( well it's priced in $US so that should happen if the U$buck is headed north). I'm thinking that the rocketing of the US buck was the achieved objective - it prevented ( well put a cliff to scale in front of) strategic currency trading that might otherwise rescue Greek and Euro interests. It also has forced a (likely) mounting group of US$ shorts to cover. - An interesting exercise is to ask "que bono" - "who benefits" at the political, economic, and finance industry level for this "event".

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