DOW MANIPULATION by Michael A. Nystrom BullNotBull.com October 2, 2006
Keeping Up Appearances: The US Stock Market
The Dow didn't quite make it to a new closing high this week, and in my opinion, it is a miracle that the market didn't completely collapse after today's inflation report. The report of the highest level of inflation in 11 years should have been the straw that broke the c amels back.
It makes me consider that the only things standing between this market and a crash are the November elections. Under normal circumstances, today's inflation report - the highest inflation reading in 11 years - would have absolutely creamed the market
Let's just say that in the next few weeks before the election that the Dow does make a new high. Even so, it will be a meaningless high. For one, the index is still substantially lower than its 2000 peak after adjusting for inflation. And the Dow of today isn't even made up of the same stocks as it was in 2000! A new high, if we do get it, will be meaningless - a phony, sham new high. But it will serve its purpose - the same purpose as the Newsweak cover above: It will give the appearance that everything is just groovy going into November's election. When things start to look bad for Bush & Co, you can expect a big run up in the market and a big, distracting, meaningless piece of spectacular news: Dow Hits New High!
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