06/10/2011

CET 13:18 Dow closed up 130 points at 10.940 Wednesday on low activity. Indexes are up now. US will open in two hours.

Thanks for all comments.

This is what happened. Monday Dow drops to close at 10.655 on a spike. This close is a new closing low.
Tuesday in Asia and Europe, markets fall sharply. Dow falls to a new intraday low at 10.400 at open. But suddenly with two hours to go rushes on upside 400 points to close at 10.800 well above the day before  new closing low. After tremendous falls in Asia and Europe it takes the just one hour before close to switch the daily technical trend to an uptrend. I wrote that this close seem manipulated. But why would someone want this close. Every one. The politicians because this was a big support to Bernanke's speech. The technicians because another lower close would send the Dow to the 9.800 area in a short time. The investors, because the downtrend is stopped and finally the guys who got the order to do it made huge amount of money on that short covering.
However, I want to know if that the sudden uptick was legally implemented. My sources tell me that a complete investigation of this trading will occur.

So I leave this thing behind me and accept that what looked to be a drop toward 9.800 will not occur the way I thought and I ask you to disregard my blog 03/10/2011 regarding the conclusions.

Will be back with today trading after US close.


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