Probably means the Tiger’s initial guess on what the FED did with the 6 Trillion bucks they wouldn’t tell Congress what they did with was correct. Even though there still is no hard evidence , tongues are finally wagging that the FED pumped it into the S & P futures market to create a what???(another Bubble of course) . Nothing else was working for them , the stimulus wasn’t working (could it be the banks sat on it ) so they had to do something.
Now isn’t it strange that the sum they wouldn’t talk about was about $5 trillion bucks and in this report by Mike Whitney on a piece by TrimTabs CEO Charles Biderman the amount that Biderman says was thrown into the market is about 6 Trillion. 1+1 sometimes does equal 2.
THERE WERE NO NORMAL STATISTICS THAT DROVE THE S AND P: HERE ARE FACTS THAT SAY PRETTY CLEARLY THAT IS WAS PURE BACK DOOR MANIPULATION AND THE FED WAS DOING IT:
* Companies. Corporate America has been a huge net seller. The float of shares has ballooned $133 billion since the start of April.
* Retail investor funds. Retail investors have hardly bought any U.S. equities. Bond funds, yes. U.S equity funds, no. U.S. equity funds and ETFs have received just $17 billion since the start of April. Over that same time frame bond mutual funds and ETFs received $351 billion.
* Retail investor direct. We doubt retail investors were big direct purchases of equities. Market volatility in this decade has been the highest since the 1930s, and we no evidence retail investors were piling into individual stocks. Also, retail investor sentiment has been mostly neutral since the rally began.
* Foreign investors. Foreign investors have provided some buying power, purchasing $109 billion in U.S. stocks from April through October. But we suspect foreign purchases slowed in November and December because the U.S. dollar was weakening.
* Hedge funds. We have no way to track in real time what hedge funds do, and they may well have shifted some assets into U.S. equities. But we doubt their buying power was enormous because they posted an outflow of $12 billion from April through November.
* Pension funds. All the anecdotal evidence we have indicates that pension funds have not been making a huge asset allocation shift and have not moved more than about $100 billion from bonds and cash into U.S. equities since the rally began
On top of this common ole every market indicators said this was a rigged rally.
P/E were sometimes as high as 100:1 and this was because prices were very high and earning were very, very low. After market activity was very active with big bucks coming in after the close, if these funds are not traceable , guess who???? Insider sales were very high .
So here we are with markets at tipsy levels for the true economic facts and even though we can’t prove it (YET) we will and then the shit will hit the fan..
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