In yesterdays’ closing post, I cynically remarked that the powers that be (TPTB) would manufacture a good-sized bounce after the drubbing the markets took:
” I expect at least some bounce (1355?) tomorrow morning — perhaps a result of overnight news designed to stabilize the markets… Keep an eye on news in the morning — euro zone, of course, but also the ADP employment figures (pathetically always great) and crude inventories.“
ADP reliably reported better than expected employment gains, gasoline inventories fell 1.6 MM barrels instead of the 100,000 gain expected, TPTB across the pond were all agog at how well the debt swap is going and — just for good measure — a QE rumor was leaked to WSJ reporter and Fed mouthpiece Jon Hilsenrath. Even the WSJ’s Marketwatch thinks this PPT reaction was a little too obvious.
|Last Night’s Forecast|
Bears could be excused for feeling like the deck is stacked against them — because it is. The plunge protection cabal is alive and well. Of course, it was alive and well last July, too, when the market fell 18% in a matter of 12 sessions. Hmmm…