What Happened In The Stock Markets Yesterday? Legit Gains Or Is The Entire System Rigged?steemCreated with Sketch.

in money •  7 years ago 

Yesterday all the US stock markets made a huge drop because of China’a announcement that more Tariffs on American products would be issued and I wrote THIS article. All the futures were deep red before opening and the markets opened very negative. After that it rose steadily and I went to bed. When I woke up I was very surprised when I saw gains of more than 1%! The markets had risen almost 4 percent in one trading session, and that is a lot for the stock market!

Checking the news to find the fundamentals behind this huge rise was the first thing I did, 4 percent in one session MUST be driven by something great!

The market rose a staggering 4% because Trump and Larry Kudlow told investors to calm down

I went to Google and searched for ‘Dow Jones’ and went to the ‘news’ section. I read all the results of the first page that came out after the stock markets had risen and got these results:

News 1.png

News 2.png

I read these articles:

https://www.marketwatch.com/story/the-dow-just-staged-its-biggest-comeback-win-in-about-6-weeks-2018-04-04

https://www.cnbc.com/2018/04/04/us-stock-futures-dow-data-trade-tech-and-politics-in-focus.html

http://money.cnn.com/2018/04/04/investing/us-stocks-markets-china-tariffs/index.html

https://www.marketwatch.com/story/dow-is-attempting-to-stage-its-best-comeback-in-6-weeks-as-stock-market-recovers-from-early-rout-2018-04-04

https://www.investors.com/market-trend/stock-market-today/dow-jones-stocks-apple-nike-sp-500-futures/

https://www.marketwatch.com/story/dow-jumps-150-points-despite-45-point-drag-from-boeings-stock-2018-04-04

https://www.marketwatch.com/story/dow-jumps-150-points-despite-45-point-drag-from-boeings-stock-2018-04-04

https://www.marketwatch.com/story/dow-erases-the-bulk-of-510-point-tumble-on-gains-in-apple-ibm-unitedhealth-stocks-2018-04-04

And guess what, non of these articles came up with a reason except for one or two that mentioned that Trump and Larry Kudlow calmed down investors:

tweet trump.png
Will this changes ANYTHING of the situation?

Minister.png
This wouldn't calm me, tariffs good for growth?!?!

WTF, A heavily overvalued stock market that just broke important technical levels to the downside bounces 4 percent (is a LOT for the stock market) because of ‘calming words’ from two persons?!?! It even isn’t something that change anything of the situation.

Then I went through Twitter and read the following article, what many may consider fake news or conspiracy:

https://www.zerohedge.com/news/2018-04-04/boj-goes-record-etf-buying-spree-prevent-market-rout

This makes way more sense for me, a central bank that bought up ETF’s that made the price rocket to avoid a devastating crash.

I couldn't find any reason for the abrupt rise in the mainstream media, and it is very suspicious that most of the articles didn't mention ANY reason at all. Normally when this big price swings happen, you read the reason in EVERY article. On zerohedge.com I found a reason that makes sense.

What does this mean if it is true? When a central bank buys ETF’s to save the stock market? It means they need to print more fiat to cover this, and this leads to inflation. When this story is true, the Japanese people just bailed out the stock market that was due to crash because of years of financial mismanaging of the FED. In other words, the normal people paid again for the sick and corrupted game of the bankers.

What do you think?

I have no proof for this, it is just suspicious. What do you guys think? Please let me know, because it is very important to know if the markets are rigged or if it was just normal volatility. If you have something that enables you to proof (against) this issue, please let me know in the comments. This knowledge can improve the result of our future trades and investments when we know for sure.

Disclaimer
This is no financial advice, just my view on the market.

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beautiful post , i think markets are rigged.
your post is really .. nice.gif

Thank you, I am quite sure that they are rigged, but my doubt is if they are so rigged that they even can time the cycles.

Mmh, I am surprised to read that the stock market are already recovering. We should expect a bear market soon, because the current bull run is going on too long.
My idea, was that this trade war would be the fuel to start the bear market, but apparently it didn't.
Is the market rigged? Well really no clue, probably there are some people who could steer the market a little bit to a certain point!

When the first tariffs were announced, the futures were as red as yesterday, but after the markets dropped even more. Calming words that create an upward pressure of 4% doesn't make sense for me. Even if it was manipulation, the downward forse will increase over time and manipulation will get harder and harder. The question is not IF, but WHEN.

Excellent financial explanation. I think the intire system is rigged.

Thank you, me too

Indeed the explanation you give is very useful @michiel

Markets are rigged. Don't believe me just look at the blogs of David Stockman, former director of budget, under Reagan and Dr.Paul Craig Roberts, assistant secretary to the US Treasury under Reagan.
Both chronicle the massive market manipulation carried out by the Fed and other central banks working in coordination together.

Watch out for the rise in short term debt rates such as Libor which is hurting banks/corporations. As Morgan Stanley have pointed out this a key factor being ignored by the media/politicians.

See the 90 day Libor rate for this year - graph from the Fed:

It's very interesting to read indeed, and we've known for quite a while the system is unfair.
I can see you are quite a reading person, I'd suggest you have a look at ‎Song Hongbing's book, Currency War. Perhaps, it will confirm your doubts...

Buy silver. Buy bitcoin.

Your post is superb nice broooo........

You got a 2.86% upvote from @postpromoter courtesy of @michiel!

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Personally I think anything involving central banks are rigged. Like you said @michiel there is no reason for the market to go up as much as it did. It could be the big names are creating drama to buy a dip and sell high. Pump and dump in the stock market?

when it comes to stock markets ,i never understand what is really happening
even though you try to make it as easy to understand

It's rigged, read my blog.

People who don't listen to market propaganda>>>
human_2006_money_02.jpg

please visit my page....you will not be disappointed 0n the markets..thnx..(good work here)

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