PPT Manipulates the Market, Bureau of Labor Statistics Does the Same with Data
Kevin Haggerty is a
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In the last commentary, on 10/3 ($SPX Will Hit New Highs Before Reversing), I
said that the SPX 1555.90 cycle high was expected to get taken out, as did the $INDU,
QQQQ and $COMPX. The bogus jobs report on Friday, with the "magic revision" of
the August -4000 jobs was revised to +89,000 jobs followed by a September
+110,000 jobs game. I will give you 10:1 odds that this number also is gets
revised down, just as it was in June and July. It was another one of those
all-too frequent conveniences, as President Bush was right on the TV telling you
that the economy is strong, as evidenced by the current jobs report. Please,
give us all a break. The Bureau of Labor Statistics can bring in the numbers any
way it wants too, with the birth/death estimates, and that is obviously what
they are doing now, maybe to hold the $US Dollar from getting hit again. Because
of the hype by the empty suits on CNBC who don’t report the estimate part of the
jobs number, and break down the other components, the futures can be gamed, as
it was on Friday, and the PPT can accelerate the buy programs if need be. The
negative revisions of previous numbers is never reported by the CNBC shills. The
Fed is obviously concerned about the weak $US Dollar, so it behooves the Bureau
of Labor Statistics/ Administration to play games with the economic numbers,
which will overstate the economy’s strength. If the economy is strong, then why
has the Federal Reserve been growing the M3 money supply at a record pace. It is
because the down-turn reality is a much higher probability right now, coupled
with a weak $US Dollar.
The SPX closed at a record high last week (1557.59), on declining NYSE volume
(1.25 billion shares), which was the average for the week. Helped by the
strength of the technology and financial sectors, the SPX gained +2.0% versus
the $INDU at +1.2%, while the NDX 100 ETF (QQQQ) was +2.7%. The energy sector
has been consolidating for the past 10 days, but the intraday volatility has
been excellent, so daytraders continue to prosper in this sector. The semis have
been ranging out for the past month, and have not been a real factor in the QQQQ
advance of the 8/16 low, so if the Generals and hedge funds expect to run this
market any higher, "they" will probably make a run at the semis. October has
multiple key time dates, so I said consider the entire month a time zone. The
next key SPX price zone with symmetry is 1570-1580, and that also includes the
1573 4.236 Fib extension of the 769-954 leg (Wave 1), measured from 789 (Wave 2
low). The highest probability is for the current advance to reverse no higher
than the 1570-1580 zone. The SPX made new cycle highs, yet its bullish percent
index ($BPYA) is only 67.80, versus 75.20 at the 7/16/ 1555.90 high. And there
is also a breadth divergence in the NYSE weekly advance/decline issues. The $US
Dollar closed Friday at 78.31, but has already made new long-term lows at 77.66
last week, and I expect more downside pressure regardless of what the Fed does.
I anticipated at least 2 sharp swings in October, and this first one so far
has seen the SPX advance from the 1526.75 9/28 close, to a 1561.91 intraday high
Friday, and 1557.59 close. I anticipate a downside reversal no higher than that
1570-1580 zone. The extent of the next decline will give us a better idea of how
vigorously the PPT will defend this market. The odds have always favored the
"casino", but now we can say with a high degree of confidence that the US stock
market is rigged at certain times, and so is much of the economic data when it
serves the incumbent Administration. H. Paulson (Treasury Secretary) refuses to
release the minutes of the PPT (Open Markets Committee), so you know it is
rigged, and if you follow the markets closely, you recognize the patterns of
when they intervene, which is always at critical times and financial or economic
news or something detrimental to the administration.
Check out Kevin’s strategies and more in the
1st Hour Reversals Module,
Sequence Trading Module,
Trading With The Generals 2004 and the
1-2-3 Trading Module.
Have a good trading day,
Kevin Haggerty