“Somebody” Propped the Markets Up Again Yesterday
by Phoenix Capital Research
ZeroHedge.com
02/25/2016
At this point the manipulations are getting ridiculous.
“Someone” decided to step in a prop up stocks yesterday. How do we know it was a market prop and not real investors?
There were several “tells.”
They were:
1) The jump in stocks was based on a sudden move in one of the key asset classes the PPT are using to prop up the markets (they are: Oil, the VIX and Yen).
2) The price action was sudden and vertical: neither are the hallmarks of actual buyers.
3) The trading session differed dramatically from recent other sessions.
Regarding #1, as everyone knows, the majority of market action today is controlled by trading algorithms.
These trading algorithms operate based on correlations between asset classes. Currently two of the biggest correlations are Oil (a direct correlation, meaning when Oil rallies, algorithms buy stocks) and the VIX (an inverse correlation meaning when the VIX falls, algorithms buy stocks).
Yesterday, Oil staged a MASSIVE 5% intraday price move on the fact inventories rose less than expected. Yes, a 5% price move based on a single secondary data point (inventories are near record highs).
The Rest…HERE
