A Sinister Theory about Wall Street’s Late Rallies
Meanwhile, is the Plunge Protection Team (PPT) hard at work in the US? For the second day in a row, Wall Street rallied over 100 points in the last hour of trading.
You can interpret this in one of two ways. First, bulls and bears are earnestly engaged in combat for control of the market. Bears are winning the field for most of the day, with the Bulls rallying late.
The other, more sinister theory is that there exists in the financial market a buyer of last resort who comes in to goose the indexes at critical times, when investor confidence is especially fragile. We take no position on the matter. But it sure does look weird on a chart.
That’s it for the week. We’ve managed to ride out the worst of the jet lag and even get some work done. It’s nice to be back in Australia. You might be surprised the number of Americans interested in what’s going on here. And not just from an investment perspective. “It’s a nice place to live,” we tell them.
“It’s a bit colder than we thought it would be…and you have the same creeping police state worries…but the Aussies seem to have a bit more common sense and a bit less political correctness than your average American. And life is just a little more relaxed.”
“But don’t they have the same debt and housing problems?” we are often asked. We’ll see.
Dan Denning
The Daily Reckoning Australia
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About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). Dan draws on his network of global contacts from his base in Melbourne. He’s the managing editor of resource newsletter Diggers and Drillers and the editor of The Daily Reckoning Australia.
Comment by Dave Bawden on 4 August 2007:
Politically Correct state you say. Try this ANC led cracker show in South Africa that even now with THOUSANDS of Zimbo's illegally entering South Africa daily do nothing to stop Mad Bob Mugabe in his tracks nor beef up security on the northern border. In fact the clown Mbeki now says "There is no crisis" Huh??? And this shower are going to run the 2010 World Cup, God help us all!!
Comment by Adolf Spohrn on 5 August 2007:
Life down under may be hunky-doory, but you seem to be forgetting the drought and the terrible air quality problem in China which seem to go hand-in-hand.