The following market study was made by one of the most sophisticated analysts on the Internet. He prefers to remain anonymous for personal reasons. HOWEVER, I am certain you will agree that the quality of his insightful Technical Analysis speaks volumes for his credentials.
This past week we all witnessed the market making ALL-TIME RECORDS: greatest one-day DOW point loss in history on Monday, followed by the greatest one-day gain in history on Tuesday. It's my considered opinion that internal dynamics of the market do NOT have the required strength to cause such whipsaw action... there must be an external force exerting inordinate pressures. I may be too old-fashion, but I thought market manipulation was illegal - regardless who the culprit might be... or is it that some are above the LAW?!
Here are some interesting snapshots to show the "RAMPING" of share prices taking place. This has been done consistently since Wednesday, with the worst of it being done on Wednesday morning. This has happened for the last three nights only on the biggest market caps, as they carry the heaviest weighting within the indices. This ramping has been occurring at the opening and at other critical pivot points during the day. Because they pick on the largest market caps, they have the privilege of pushing up the indexes as well creating the delusion of a rising market. Many investors are basing their decisions on the performance of these indices. This is no longer a stable market, it is being manipulated to the maximum. These four shots were taken last night (10/30/97). The depth of these ticks portrays the depth of manipulation. On Wednesday INTC had $6 one-minute ticks. This action is severely abnormal.
What is happening is that as the masses (read public) dump their millions of shares, someone, presumably the "POWERS WHO BE" is propping the market up. The depth of the ticks are showing that the price is being dumped, but someone is buying them back as fast and even faster than they are being dumped. To elevate the price to create the illusion that the share is not falling, but in fact going up. They must buy at a faster rate than they are being sold at. Someone dumps a large parcel and the price falls, then the "RAMPERS" RAMP the price back up. This is occurring for periods of up to 1/2 hour.
If you have a good look at the ask/last/bid quotes for GE, you will notice that the share price is far higher than the ask price. What is happening here is that they are freezing the sellers and going in above their price to lift the price substantially -- making the public think that the share price is now safe and going up. I have noticed this happening quite a bit, when they want to turn the indexes up.
If they weren't doing this the market would be down a lot lower than it is. That they are doing this and luring investors in, and still the market is going down, means that eventually they will fail, as the masses over-come these RAMPERS. They therefore are enticing many people into purchasing shares, that wouldn't be buying if they knew the truth. As this market collapses under its own weight, these buyers will learn to hate these RAMPERS who have manipulated them into buying this markets.
Watch the top market caps tonight (10/31/97) - INTC, GE, DELL, MSFT, IBM plus others. See how many you can find yourself. Also watch the PREM. It will show the extent of the ramping. On Wednesday the PREM shot up towards 30 when it normally sites around 6 to 8.
Tonight is a hyper-critical point in the life of the DOW, SPX etc. They will have to fight as hard as they can. They will put the greatest effort in tonight to turn the indexes up. If they lose control tonight this market will crash forthwith.
Cheers.
QFX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
