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Yes, Virginia, There Is A Plunge Protection Team
By Karen-lee Bixman
Karenleebixman@hotmail.com
The Investigative Reporter
Investigative Update
7-18-2
The following story is a variation of the famous New York Sun Editorial of 1897 Yes, Virginia, There is a Santa Claus.
Dear Editor:
I am 28-years old and I am heavily invested in the stock market. On July 5th, I was amazed when for no apparent reason, the Dow gained 300 points. On July 15th, after being down over 400 points, I was again, amazed when the Dow regained 350 points in the last hour of trading. I have heard rumors that there is such a thing called The Plunge Protection Team, but I have asked my friends and broker about this, and they say there is no such thing.
I finally asked my Dad and he suggested I write and ask you. Dad says, "If you see it in The Sun, it's so." Please tell me the truth, is there a Plunge Protection Team?
--Virginia O'Hanlon
Virginia, your friends and broker are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except what they can see. They think that nothing can be which is not comprehensible by their little minds. Most minds, Virginia, have been brain-washed and are incapable of grasping the whole of truth and knowledge.
Yes, Virginia, there is a Plunge Protection Team.
The official name of the team is the President's Working Group on Financial Markets. It was created by Executive Order 12631 on March 3, 1988 and signed by President Ronald Reagan. The members include the President, the Secretary of the Treasury, the Chairman of the Federal Reserve, the Chairman of the Securities and Exchange Commission, and the Chairman of the Commodity Futures Trading Commission. This group artificially props up the market to give investors the false illusion that all is well with the stock market and the economy.
Are you familiar, Virginia, with the words of Hitler's henchman Dr. Joseph Goebbels? He said, ìThe lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth becomes the greatest enemy of the State.î Alas! The real economy is dreary! It is as dreary as if there were no Virginias, but the media and government continue to give assurances that all is well. When the economy finally crashes there will be no childlike faith then, no poetry, no romance to make tolerable this existence. We will have no enjoyment, and surely not in sense and sight. The external light with which childhood fills the world will be extinguished. Thus, we must rely on our faith in God to see us through,and not the State.
Not believe in a Plunge Protection Team! Well, then, you might as well believe in fairies. You see, Virginia, reality is not what it appears to be. In the financial world, government indicators, such as monthly unemployment figures are fudged. Thus, the current 6 percent unemployment is actually closer to 12 percent. Company earnings, as reported by corporate America are not real either. They have been fabricated to make the companies ìlook goodî and transfer the wealth of the ìlittle peopleî to Fat Cat CEOs. Even the president and vice president were involved in such practices when they headed private corporations. They wonít go to jail for their misdeeds, however, neither will the other CEOs because they all have friends in high places.
You might get your Dad to hire men to watch the stock exchange to catch The Plunge Protection Team, but even if you did not see them, what would that prove? Nobody sees The Plunge Protection Team, but that is no sign that there is no Plunge Protection Team. The most real things in the world are those that neither children nor men can see. Did you ever see fairies dancing on the lawn? Of Course not, but thatís no proof that they are not there. If, however, the corrupt officials, evil elitists and controlled media wanted you to believe in fairies they would convince you that it is so.
Our entire reality is controlled, Virginia, even to the point of what we see and hear.
Technology now exists through electronic imaging systems whereby photographs and video clips can be altered so even a professional photographer or film maker would not be able to detect the fake. On August 1, 2001, New York Times reporter Lisa Guernsey, reported that, ì AT&T Labs will start selling speech software that it says is so good at reproducing the sounds, inflections and intonations of a human voice that it can re-create voices and even bring the voices of long-dead celebrities back to life.î Combining the technique of video and voice, MIT researchers, as reported in the May 5, 2002 Boston Globe, are now able to produce, ìrealistic videos of people saying things they never said. The new software relies on an ingenious ap-plication of artificial intelligence to teach a machine what a person looks like when talking.
"It is only a matter of time before somebody can get enough good video of your face to have it do what they like," said Matthew Brand, a research scientist at MERL, a Cambridge-based laboratory for Mitsubishi Electric.
Nobody can conceive or imagine all the machinations there are unseen and useeable in this evil world.
So, Virginia, you might ask, if our perceived reality has been skewed, what is real?
The Federal Reserve is real, but not as you know it to be. It is not an arm of the federal government but is instead, a private corporation composed of elitist bankers who literally control the United States financial system. The Fed, in concert with secret societies and elitists groups such as the Council on Foreign Relations, have already orchestrated the coming financial crash. When will it happen? Very soon, for to achieve the New World Order they desire, the economy of the United States must be destroyed.
Now, Virginia, I understand that by imparting this information to you, you might well perceive me as a prophet of doom and gloom or worse yet, a conspiracy nut. Well, I have heard that before, however, just because it is hard for you to believe these things doesn't make them untrue. If you really want to know the truth, Virginia, it is out there, but it will require you to read. Yes, I know that is a challenge for you and others your age as you are products of the public school system. Although you are unaware of it, you have not been taught critical thinking skills and therefore lack the ability to examine and assimilate information that would seem contrary to the norm.
It has not been my intension to frighten you, Virginia, quite the opposite. I have only wanted to impart the truth. You see, while evil cabals may appear to dominate the events on this earth, they only have a season. The God of the universe is still in control. You tear apart the baby's rattle and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest man, nor even the united strength of all the strongest men that ever lived could tear apart. Only faith in God can push aside that curtain and view and, picture the supernal beauty and glory beyond. Is God real? Ah, Virginia, in all this world there is nothing else real and abiding.
No Plunge Protection Team? Unfortunately, it exists, but that won't be so forever. A thousand years from now, Virginia, nay 10 times 10,000 years from now, the evil these men do will be a long forgotten memory.
Note: Please feel free to pass this along to the Virginias in your own life.
>>You been trading too much to remember that China is a country devoid of any of the basic freedoms that we cherish. <<<
and that means they...... I don't see your point. China is slowly becoming westernized. We have been much to liberal with our freedoms that now they may lead to our economic undoing. I see China becoming second (if not first) strongest economy within the next 25 years. China today is much different from the China of 10 years ago. They have the advantage of seeing what freedoms that we did not deal with responsibly and avoiding those issues.
Joe
Mainehiker, You got my vote too for Greenspan. He should have been the first to go. Never could figure out why the business community "knigthed" hims before the brits did. He seemed so good in his younger years but got turned around and caught up with the "new economy" that he lost sight of reality.
Joe
MTG- Also showing good downside. Core short along with ABK.
Joe
DJ NASDAQ-100 Index (QQQ) Block: 750,000 Shrs At 26.63
NASDAQ-100 INDEX TRACKING STOCK Last trade AMEX: +0.43 at 26.63 on 0.02 uptick Trade vol: 750,000 = 1.2% ttl vol.Block equals 0.6% shrs out Ttl blk vol: 27,685,500 = 45.4% ttl vol.Block equals 21.1% shrs out Avg blk vol: 41,715,432 = 47.6% avg daily vol Ttl vol: 61,010,900 = 69.7% avg daily vol Avg daily vol:87,548,528 / Prev day -0.37 on 85,407,600
(END) DOW JONES NEWS 12-06-02
03:23 PM
MHK- Looking weak and trending down most of the day. Core short.
Shorted some WM earlier.
Joe
I like the line better, "Paul, Larry, I don't know what we would do without you but starting at 9:00 we are going to try".
Joe
NCEN- Been looking at that one too but have no current position. Good luck with it. I may join you. Swing trade?
Joe
National Semi Sees 3Q Gross Margins Declining
Natl Semi 2Q Orders Down 5% From 1Q, Up 23% From Year-Ago
*DJ National Semi Sees 3Q Revenue Flat-Down 5% From 2Q
Halted to report 2Q
*DJ Natl Semi (NSM) Halt: News. Last 17.41
DJ NASDAQ-100 Index (QQQ) Block: 500,000 Shrs At 26.35
NASDAQ-100 INDEX TRACKING STOCK Last trade NMS: +0.15 at 26.35 on 0.02 downtick Trade vol: 500,000 = 1.4% ttl vol.Block equals 0.4% shrs out Ttl blk vol: 16,975,400 = 46.8% ttl vol.Block equals 12.9% shrs out Avg blk vol: 41,715,432 = 47.6% avg daily vol Ttl vol: 36,302,100 = 41.5% avg daily vol Avg daily vol:87,548,528 / Prev day -0.37 on 85,407,600
11:40 am
DJ NASDAQ-100 Index (QQQ) Block: 500,000 Shrs At 26.29
DJ NASDAQ-100 Index (QQQ) Block: 1,000,000 Shrs At 26.33
Posted at 11:11
QQQ- Added to short. 26.52
DJ NASDAQ-100 Index (QQQ) Block: 1,000,000 Shrs At 26.38
NASDAQ-100 INDEX TRACKING STOCK Last trade NMS: +0.18 at 26.38 on 0.08 uptick Trade vol: 1,000,000 = 4.1% ttl vol.Block equals 0.8% shrs out Ttl blk vol: 12,001,000 = 49.6% ttl vol.Block equals 9.1% shrs out Avg blk vol: 41,715,432 = 47.6% avg daily vol Ttl vol: 24,177,700 = 27.6% avg daily vol Avg daily vol:87,548,528 / Prev day -0.37 on 85,407,600
KSS- Covered for .98 this am. Back short at 62.50. Joe
QQQ- Stopped out for a dime loss. Back short at 26.42
QQQ- short 26.12 eom
>>How about bringing back Rubin? <<< The PPT couldn't afford to let him go. <VBG>
Just thinking...the PPT has to step in here. I could see them letting the market fall this am and then stepping in this afternoon to stop the momentum so we don't have alot of carry over momentum into Monday. Be interesting to see what the repo's will be today. The Fed has to keep consumer confidence up through the holidays.
Joe
QQQ- Covered half my QQQ's short here at 25.63. Could be a very ugly day. Looking to continue to short the blips as the labor report puts us into new bear territory. PPT needs to step in here but I think they may have a hard time fighting this battle. The labor report also says we may indeed have a bad Christmas selling season. In my opinion, a bad selling season guarantees another dip into the recession. (Some say the last recession never left) I don't see the catalyst to turn this thing around here. Even the PPT has limitations.
JMO, Joe
Dollar getting waxed too. DJ NY Early: Dollar Getting Pummeled After Weak Jobs Report
NEW YORK (Dow Jones)--The dollar was on a sharp downward trajectory early Friday in New York following a report showing that November's employment environment was far weaker than had been expected.
[IBM, RATL] IBM TO PAY $10.50/SHR FOR RATIONAL STOCK
IBM, RATL] IBM TO ACQUIRE RATIONAL SOFTWARE FOR $2.1B IN CASH
RATL closed at 8.17 yesterday. This is over 4 times tangible book and 50 times Mar 03 earnings. Revenues are projected to grow 6% next year. RATL was trading near $10 Thanksgiving week.
Joe
Mlsoft, Thanks for the reply. Upon my return from dinner it looks like Greenie did some shopping as QQQ is back over 26.40 and they say INTC is up 1% and CSCO up 2%. I shorted QQQ in afterhours at 26.38. When I left for dinner it was down to 26.22. Wonder what happened? Maybe your take homes will show some green.
CAO beat by a penny. Not so popular so maybe I cover ok at the open.
Indeed the market does look over sold. No guts to be very long but I have cut back on my shorts.
Joe
>>If you notice, I have been doing more trades on the long side the past two days.<<
I noticed and it has been puzzling to me. Like you, I was trading that last rally as though it should be about time for it to end. The market continued to go up with very little hestitation. I was trading against the trend as I believe you were. Now, the trend is showing signs of a change and bad news is being treated like "bad news" again. Gold, the treasuries and the Fed draining are sending positive signals to the bears. Also, I am reluctant to carry much home long as I believe that the overnight risk/reward greatly favors the bears in today's world. With my holdings in IRA's and other accounts I don't trade, I almost have to be short to be hedged.
Why don't you think that this downward fall may have further to go than what most would expect as the trip up did? Is it mostly market timing? I admire your trading and Zeev and yourself prove that money can be made going both ways..even on the same stock. Just curious as to why the temporary bullishness. The "due for a bounce" is the same as a "due for a fall" that we never got the past several weeks.
Respectfully, Joe
It may have been the lack of anything positive as the call came to an end and also that factory under-utilization charges will be up from 3Q to 4Q. Also, didn't say anything positive about inventories.
Joe
Agree. Basically saying that not much has really changed. Sounds like the callers are getting frustrated. One analyst when asked if he had a question. He said yes, but it had already been asked three times and never answered.
Joe
INTC- Just put in a new low for the day. eom
My bet is that J6P runs them up tonight and INTC gets sold in the morning. Just bought some Dec AMAT 17.50's puts. Not much premium. Conservative bet as I usually only buy ITM.
Joe
QQQ- Why do i think they were shorts? First of all I don't put much credit in "max pain". There is so much that goes on that are not in those numbers that you see that I find them not much use. Second, I watch these QQQ's super-sized block trades daily. There were a bunch at the open. I don't think smart money would have bought the open. Then we had a batch between 11:30 and 2 at about 26.30. Looked like covering to me with market conditions being what they were at the time. Then we had the later ones at higher prices that I think were short. Either we had buy to cover- buy- sell or we had short-BTC-short, IMO.
I could be wrong but I watch them enough that I get a feel for which way they are trading. I could be wrong. I often follow their moves and more than not a make money.
Joe
KSS- Just covered my batch of KSS for 90 cents. Still got the first trade from 61.95.
Joe
QQQ- I see 11 super block trades of over 500,000 today. One trade at 14:17 was for 2 mil shares at 26.57. Another 500,000 at 14:12 for 26.59. Why do I think they were shorts? LOL!
Joe
KSS- Yep, they have gotten so busy no one goes there anymore.
Yogi
CAO- interesting special situation. Insiders have sold 20% of the float with half in June and half in Nov. Down far on the list of auto parts dealers. Earnings tonite. Could be interesting. I'm short from about a week ago at slightly higher prices for the play on earnings. Missed earnings 3 out of the last 4 quarters. Debt to equity of 1.89. Equity includes a fair amount of goodwill. Just an idea.
http://stockcharts.com/def/servlet/SC.web?c=cao,uu[l,a]daclyyay[dc][pc20!c50][vc60][iLb14!La12,26,9]....
Joe
>>Bukoll listed department store operator Kohl's Corp. (NYSE:KSS - News) among the biggest disappointments <<
One of the few retailers that are up today. Grrrrr!
KSS- Close to my stop. Doubled up short and moved my stop up a 15 cents. Hope to cover half lower today and take the rest home.
Joe
TGT, WMT, ANF, JCP- all down today. KSS should join them IMO.
Joe
KSS-A report today said that this year's late Thanksgiving will put a damper on retailer sales numbers for the month of November, as holiday shopping didn't escalate until November 29. Kohl's (NYSE: KSS) should continue to enjoy success, however, as the article said the department-store name should post a same-store sales increase of three percent. Since bottoming out on October 10, KSS shares have climbed around 60 percent but have yet to top their mid-August and early-September peaks. Today, the equity has violated its 10-day and 20- day moving averages for the first time in about six weeks. On the options front, Schaeffer's put/call open interest ratio (SOIR) for KSS has risen sharply over the past month to its current reading of 1.46. This resides in the top four percent of all annual measures of this sentiment indicator.
KSS- Short @61.95. Position trade with stop @63.12
DJ Kohl's/Sales -2: Co 'Disappointed' With Nov Sales >KSS
MENOMONEE FALLS, Wis. (Dow Jones)--Kohl's Corp. (KSS) November same-store sales fell 3.4%, widely missing First Call estimates for a 2.7% increase.
In a press release Thursday, the retailer said total sales for the four weeks ended Nov. 30 rose 11.3% to $1.09 billion from $975.9 million.
"We are disappointed with our sales results for November," Kohl's said in a statement. "With the later Thanksgiving, sales of holiday gifts got off to a slower start than we had planned."
MTG- Now trading below it's 20 and 50ema.
http://stockcharts.com/def/servlet/SC.web?c=mtg,uu[l,a]daclyyay[db][pc20!c50!f][vc60][iLb14!La12,26,...
Joe