by Jack Lee
Latest recession casualties are Circuit City and DHL employees. DHL is laying off about 9500 workers and CC is filing for bankruptcy protection. CC has been in trouble from declining sales and strong competition for well over two years and this has finally brought the giant to its knees. Meanwhile the cost of the AIG bailout grows and Japan’s economy worsens. Oddly the Stock Market is moving up again and many insiders are saying they think the DOW will break 10,000 by January.
IMPORTANT INFO: If the DOW does manage to break 10,000… watch out. This could be the biggest makret manipulation in history. Stocks moving up now is unrealistic and you have to ask yourself, why? Why in the world would the market moving up as the bad news mounts? I have a theory and this could be a pump and dump tactic done on major scale. A pump and dump happens typically to just one stock when a major player buys mass amounts of the stock and forces the price up because others seeing the unusual buying activity also jump on. This also triggers computer guided traders to jump on because there are technical breakouts occurring. When a consortium of major funds and market makers, controlling billions of dollars, all loosely (and therefore legally) conspire (with plausible deniability) to buy key DOW component stocks in defiance of the weakening market conditions, they can create a great following of lemmings. Once the herd is moving and momentum is assured to carry it forward, they slowly start dumping their holdings at advantagous prices, the pump….and the dump is now complete.
Some more aggressive types will begin shorting the market to catch the long ride down as the Dow slumps back toward the bottom of the realistic equity range. These big guys will make money all the way down and the best part there is little risk because they have manipulated the market. Obvoiusly, the market makers are counting on you not to realize this tricky tactic, but now you know; aren’t you glad you read Post Scripts?