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The Market That Won't Go Down (yet)
Posted on 03/26/2007 19:07 PM | Link | Post Comment
The March 26th Newsletter Briefing is posted to the newsletter portion of the website. To access the newsletter, simply click on the "Subscribe Now" tab, establish a username and password, and you'll have full access to the Dynamic Growth newsletter and portfolio. This free trial will end on June 1, 2007.
After being down as much as 112 points intraday, the mysterious forces once again showed that they are not ready for the market to go down.
If you have been following this blog for some time, you know that we have reported on the mysterious forces in the stock market on numerous occasions. In fact, you don't have to take our word for it, Jeff Saut at Raymond James has been all over these mysterious movements for quite some time.
In 2006, Saut said;
"As for the “here and now,” we have deemed the recent performance by the major market indices to be somewhat “unnatural.” Markets typically go up, correct by 25%, and then re-rally if they are going to trade higher. This, ladies and gentlemen, has not been the case recently as the averages have “unnaturally” vaulted higher without so much as ANY correction."
Other strange occurances Saut listed as "unnatural" were;
1) "The Department of Energy mysteriously said it would not add to the Strategic Petroleum Reserve (SPR) until after the winter months, even though the SPR was below prudent norms."
2) "When it looked like the equity markets were set-up to correct (read: decline) in mid-October, the NYSE petitioned the SEC, and was granted, a mysterious reduction in margin requirements for an already over-margined hedge fund community."
3) " Also mystical is why every time the equity markets look like they are set up for a downside correction, do “buyers from Mars” appear in the futures markets to prevent a decline? We have documented such occurrences in past missives where those “mysterious buyers” have shown up at 6:30 at night and “bid” the S&P 500 futures from 1375 to 1397 (or +22 points) in a mere two minutes, but that is a discussion for another time."
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