LET IT BE, LET IT BE, LET IT BIE oh LET IT BIE.......
This is a great old Beatles song and also a message to the PPT. Why in the world won't you let the market just have a natural correction?
Here is a 5 minute chart showing the PPT at it's finest in the last few minutes of yesterdays market action. Of course I have harped on this repeatedly, and here is the real reason why I don't like this. This type of action is going to cause a V top and a huge downmove when at some point a fund liquidation area gets reached, and even their volume will not be able to stop it. I think had they just let a natural corrective move happen, this trend could have really had some additional legs.
It still could have, but if you go back in history and look at times when the government has tried to artificially control prices on things, eventually market forces take over and big moves in the unintended direction occur. It would be normal and healthy to let the market correct some here, but just artificially improving closing levels to stop it is just postponing the inevitable, and I think making it worse.
All that aside, this may allow for legging into more of a short position for me up here which will be nice. I was kicking myself mid day yesterday having not put my full position on, thinking I might have missed the opportunity. They really fooled me yesterday, I told many of my colleagues that I did not think the PPT was going to show yesterday.
As Howard Stern's father used to say to him when he was young, "Don't be stupid you moron!" I found myself with that thought at yesterday's close. What an idiot I was to state I thought they would not show up.
The next post will be on the dollar, we might be on the verge of a major rally there.