Plunge Protection Team Helping Stocks (And Gold)?

The DOW continues to experience volatility however just minutes before end of trading Thursday a massive upsurge in the equities occurred. Rumors of the Plunge Protection Team’s involvement in the last minute market move are circulating.

DOW Volatility, Plunge Protection Team, Gold & Silver’s Response – Golden Rule Radio

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Q3 hedge fund letters, conference, scoops etc

Transcript

Welcome back to radio. We will look ahead to the coming week. But we also need to look behind a lot of volatility a lot of action not only in the metals markets but in the markets that impact the metals. Not the least of which are the equities markets in a Christmas crash. I'm going to call it. So before we jump into gold silver platinum and palladium Miles you want to throw up your fascinating chart that you've got here today measure up almost 11 100 points on the day.

I guess equities are the thing everybody's talking about. I'd like to actually go back to a Zero Hedge article from last Friday which I'm sure a number of our listeners have probably read but it was a report coming out of Wells Fargo talking about a rebalancing of corporate pension funds moving funds out of the bond market and over into the equities to try to even stuff out here in the last few days of the year. So with three trading days left four if you count today Wednesday we did see a little bit of a rebound on the Dow. Now what I always love once again is when the fundamentals or the story lines up with the technicals so we can actually go back to a gap a rising gap that was formed back in September 2017. Lo and behold Ward the price come into right into the gap. So it's no surprise of mine. Now what took it down to that gap obviously could have been some manipulative markets knowing that there were a ton of standing orders that would have already been sitting there waiting to get filled. So in all fairness we will say congratulations to the Dow. I believe the largest single day rise since March of 2009. At one point this morning we were down about 12 and a half percent on the year but we are now only down 8 percent on the year. And if he chose to look at the last few months here we were down almost 20 percent since October now down only 15. So do we see the Dow making an 8 percent rise over the next three trading days. I'd certainly say absolutely not. But it is good to see them trying to tinker with some stuff.

Well and I think too you know this is a focus on the precious metals but with the equities markets oftentimes dictating things right. Gold is a reactor we often say that on the show and so gold is going to be sort of that barometer or a reaction to what's going on in the dollar or equities markets or geopolitics. And you're seeing a lot of strain on all those areas. But you saw the metals price reverse. You know we had hit a cycle high here which you're going to get into as well. But with the equities having such a big bounce I think in the coming days we're going to hear that there is a one oversold position right they're going to say stocks just were oversold going into Christmas Eve. And two there's this mention of the assembling of the Plunge Protection Team. Right. And very very rarely have you ever heard it discussed publicly and certainly that term used. But Reagan initiated the Plunge Protection Team back in the late 80s.

And it really is his team and Menuchin came out and said hey I assembled the CEOs of the top six banks that are too big to fail banks sure everybody gets a power ring from time to time they hold them in a circle get to sit at the Knights of the Round Table and summon the Plunge Protection Team.

How are we going to spend the money. We'll make the money easy. How are you guys going to go invest it in juice the market. So that is the reality. That's what the Plunge Protection Team does so we can look at all the technical analysis which is brilliant around it. We can we can listen to the speakeasies say that yes it's an oversold market but really this reeks of manipulation. This isn't the capitalism that the country was founded on. Keep in mind this is not a free market. So when we're breaking down and analyzing the precious metals and the equities the days are long gone where the actual free market economy rules the roost.

Sure. So our market recap today is technicals Plunge Protection Team manipulation which I would agree with.



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver