There is ample documentation of central banks directly buying stocks as an intervention. IMO the Friday upside surprise was exactly that: Fed worried about Citi earnings causing another Bear-like black swan. So they sell gold, use the proceeds to buy dollars, and buy Citi stock, then start a rumor about investors being glad that Citi hadn't lost more than it had. Bubblevision eats it up. Simple.
If you'd like documentation regarding CB direct intervention in the markets in their own words, see this:
2 comments:
I was the 'guy' asking about preps. I wouldn't want to have a trucker's strike from high fuel prices slowing down my eating habits....
I missed the recent $118 SKF! Dang, I wanted to book.
I have an average cost of $112.08 on 60 shares.
Today I just got 20 more for $100.35
That makes it $109.15 for the lot.
If it drops further, I'll sell something and get 20 more.
I see the mkt rising a little, but what on earth would keep it rising with high oil costs, declining dollar, financials in a mess???
Ron,
There is ample documentation of central banks directly buying stocks as an intervention. IMO the Friday upside surprise was exactly that: Fed worried about Citi earnings causing another Bear-like black swan. So they sell gold, use the proceeds to buy dollars, and buy Citi stock, then start a rumor about investors being glad that Citi hadn't lost more than it had. Bubblevision eats it up. Simple.
If you'd like documentation regarding CB direct intervention in the markets in their own words, see this:
http://query.nytimes.com/gst/fullpage.html?res=940CE1D61230F935A15750C0A9659C8B63
If the link doesn't post, just google for this NY TIMES article:
"Bank of Japan to Buy More Stocks From Lenders"
Post a Comment