A “Mystery” Buyer is Propping Up the Markets
By Graham Summers, MBA | Chief Market Strategist
This is BLATANT manipulation!
Stocks suffered a mini crash in early August when the Bank of Japan blew up the carry trade. Peak to trough, the S&P 500 lost 10% in a matter of three days.
Then “someone” stepped in, buying stocks hand over fist, and the market erupted higher, erasing all of those losses in less than two weeks.
This was blatant manipulation. No REAL buyer panic buys stocks. In fact, the traders running books for large financial institutions are graded based on their ability to acquire shares without moving the market.
Again, this was clear manipulation. Someone was trying to force stocks higher no matter what.
Fast forward to last week, and the same mystery buyer was at it again.
The S&P 500 was rejected by critical resistance at 5,650 (red line in the chart below). Stocks began to roll over, taking out the all-important 50-day moving average (the blue line in the chart below). Note that breaking below the 50-DMA was what precipitated the minicrash in early August.
Then the mystery buyer showed up again, PANIC BUYING stocks. Sending them straight up with every single dip being bought aggressively. Once again, the entire decline was erased in a matter of days.
Again, this is blatant manipulation. No REAL buyer with deep pockets does this stuff. This was someone who was CLEARLY intent on propping up the stock market at all costs.
Who is doing this?
It has to be the Fed… or the Fed courtesy of a proxy.
No other investor has bottomless pockets and PANIC BUYS stocks like this. Again, this is not some investor who’s trying to make money… this is someone who wants stocks higher no matter what.
Again, this has to be the Fed. In fact, I believe that at some point in the next few months, the Fed will openly admit to buying stocks with a new QE program.
I’m putting together a special report detailing precisely why this is… and which stocks I believe the Fed is buying.
This report, titled Chapter X will be sold as a standalone item for $499.
But readers of our free daily market commentary Gains Pains & Capital will have a copy delivered to their inboxes FREE of charge.
To join Gains Pains & Capital and have your copy of Chapter X delivered to your inbox later this week…
https://gainspainscapital.com/subscribe/
Best Regards,
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research