Sunday, September 07, 2008

PPT


Ok. This after hours jump could just be the PPT (Plunge Protection Team).
I'm not trying to make predictions on where the market is going based on news, but let me just say that the current news we have this weekend is terrible and the US Economy is in the shitter, and its getting shittier if that's even possible.

WaMu CEO is ousted.

I like this post from Elite Trader on the 5 horseman(thanks to Digs)

1.January-Fed lowers rates dramatically January 2008 to help banks.(January 21st the world stock markets plunge, and on Monday morning the FED does a surprise 50bp interest rate drop, and another 25bp days later at the scheduled FOMC meeting)
2.February-MBI/ABK delay downgrading
3.March-Bear Sterns bailout over the weekend. (interest rates on bonds spike at their lowest levels for the year, BSC to be bought for 2, but then is raised later to a higher price at $10)
4.July- SEC enforces rule of "NO SHORT SALES"(naked shorts) on selected financial stocks, which made it incredibly difficult for anybody to borrow shares to short on selected financial stocks like BAC, C, and GS)
5.September- Government bailout of Fannie Mae and Freddie Mac, which will cost taxpayers billions in an economy seeing record levels of unemployment and mortgage foreclosures.
6. Whats next- AutoMaker Bailout? WaMu or other big bank failure? FDIC failure?

With that acknowledgment out of the way, I'm ready to trade my signals no matter if the market goes up or down. 300pts can become 600pts, and 300pts can become -300pts.

Who owns FRE and FNM?
Institutional Holdings for FRE
Institutional Holdings for FNM

Paulson warned stock holders 2 months ago.

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