| To: Hawkmoon who wrote (32344) | 5/18/2012 1:29:04 AM | | From: FCom777 | 1 Recommendation of 50664 | | | Either they had the "implicit agreement" from the Fed or perhaps they are extorting Fed action by going out on the limb with full knowledge that Fed has no choice but to backstop them. But then again JPM owns a portion of the Fed so they are likely complicit. Either way the result is the same.
I'm afraid the problem is much greater than that though. The problem is structural. Far too much smoke and mirrors - tied to derivatives - which are basically the wild west since they are not regulated.
Read about what my friend Golem has to say about ETF's to get a sense for what is going on. There are actually 3 recent posts on the matter that all merit reading - and understanding. It's not a pretty picture - and likely just the tip of an even bigger iceberg ...
golemxiv.co.uk 
But then this could all be doom and gloom that would be quickly forgotten if they can somehow push the market higher ... anything is possible when smoke and mirrors are rampant.
On another note, have you noticed the trend of Total Cash reported by the big banks over the past several months? Led by DB, it has been increasing at an incredible rate. DB recently passed 2 Trillion (yes, that's with a T) dollars. If I recall correctly, they reported just over a trillion about several months ago. The other big banks (JPM, GS, HSBC, MS ...) each are reporting just under a trillion - and those numbers have been fairly steady while DB has been soaring. Have the data over the past year or two and should plot that out to get a closer look ... but it sure doesn't seem like they are playing with a weak hand - all courtesy of the Fed I am sure ...
P&F shows S&P support levels at 1270, 1230, 1210, 1160, 1080, 1050, 1020 ...
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