Ironically while working out in my gym last night I caught an interview on Fox with Biderman from Trim Tabs, he was calling out the PPT!!! It does seem apparent now that some others must be publicly calling them out, so I am not alone on this. The one point he made which is entirely valid is that the Fed will not disclose what comprises the securities on their balance sheets. I guarantee that a similar probe into Goldman Sachs futures trading accounts would also lead to a dead end. GS is rumored to be one of the firms that has the PPT trading accounts. Doesn't it seem odd the favoritism they constantly get from former cronies who are now in government?
My guess is the bonuses will be allowed to fly, they do not want someone so discontented that they throw caution to the wind and rat them out. However, in reality, there is nothing illegal about this. The only thing I could possibly see that might fall along the lines of legality would be how this trading is classified in the COT report. That report has been increasingly difficult to deal with in just one market specifically, the SP 500. This is obviously another interesting coincidence. Might it be they change from one reporting period to another, how they classify the PPT transactions? Of course we will not likely ever know the truth on this. One fact we do know, 62% of the days since the July low have been up closes in the DOW, this is very unusual.
There has been something all along about this rally that has just not sat right with me right from the beginning, and to be honest I still cannot put my finger on it. The usual suspects of course, are all the divergences along with light volume that have failed to produce even a close under the 50 day moving average. Also the wierd intermarket relationships that have been in place between markets that should have no trading correlation. All of these things I have written about in here. Also the record high reading in the ADX that never even caused 2 consecutive down closes, that is unheard of.
The one comment Biderman made that makes alot of sense to me, is that being a fund flow tracker, he cannot find any influx of money of any amount that would anywhere near correlate to the 6 trillion increase in equity values. For me as someone who has been aware of the PPT for quite some time, they seem to now be in the same mode as the administration as a whole. As much as I am against it, the "F.. you we won" take on almost everything they do, it is kinda funny. It is like winning a hoop game by 20 points and when someone starts talking smack on the other team, you just point at the scoreboard. The PPT seems alot less concerned about hiding their activities now than they used to be. We are seeing that across the board in politics, and there have been comments by politicians supporting the idea of buying futures. They are just paving the way slowly for possibly revealing it at some point, but we will have to see.
For the time being as I have repeatedly stated in here, we have a rip roaring bull market here so be very careful shorting. I am still shorting just because I am following my models, but I am getting slapped around a little this week after a big week last week. After all 9 of the last 11 closes have been up in the overall market, so shorting is really going against the tide. At times these running markets like this build up a crescendo and spike upward, so do not be shocked if that happens. 1235 seems to be a lay up to me but who is to say we do not go way beyond that. The trend is up so unless you are really experienced and have very tight money management rules, I would not suggest shorting. My Russel short is still on but appears to be a likely stop out tomorrow. I have very small size in this trade due to the low confidence level in it that I had as well as small profit target. I am glad I made that choice to go small.
Size does matter at least in trading!!!!!