US Stock Indices Miraculously Lift, in Biggest Gain in History: No Mention of the Plunge Protection Team in the Media. By Bill Murphy.
Huge buy orders, the biggest ever, came in from US pension funds at almost exactly the same time, reversing a down day into and up day and creating the biggest up days ever (5%). How did that happen?
On Monday we noted that Top Trump official calls bankers, will convene ‘Plunge Protection Team’. That’s the unofficial name for the President’s Working Group on Financial Markets, set up in 1987 by Reagan after the big market crash of 1987 (25% in a day). Then miracles occurred.
As was advertised everywhere, Treasury Secretary Mnuchin tells the investment world he is going to call on the Plunge Protection Team. Miraculously, two days later, the DOW posts its biggest gain in history. And then the next day, the DOW pulls about as big a late dramatic reversal as any in history … the sort of late reversals (same time) we used to see when our stock market was recovering from the financial crisis.
So here are two days following the PPT doing exactly what Mnuchin said they were going to do, and nary a word is mentioned of the Plunge Protection Team. It as if what he declared has vanished into thin air.
The mainstream reporting is determinedly clueless, for example:
The week’s sharp moves were attributed mostly to light holiday trading volume and computer-driven trading. But the ups and downs during a usually calm period are no doubt stoking investor anxiety about what’s to come.
What sort of world do we live in that the media will not report the obvious, or at least talk abut it? Something is deeply wrong.