FBI used Trump Tower blaze to snoop on Trump: WH source

The FBI raids on President Trump’s lawyer Michael Cohen took the legs out of the market on Monday. As news broke at about 3:10PM, the Dow dropped 310 points into the close.

However the talk around the White House pointed to the coincidence of a fire at Trump Tower over the weekend just prior to this take down of Trump’s lawyer. Continue reading

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Tarmac Troika to topple Tariff Tantrum

As I wrote the last two days, here and then here, the Gary Cohn departure from the White House would be a non event as far as market reaction.

I am told that this event will also be lost in Washington as far bigger news will come out over the weekend. Continue reading

Dow volatility may soon rival bitcoin’s price moves

SPECIAL SATURDAY POSTING

What the hell is going on in the stock market this week?

The Dow Jones index had a 1,000 point or 3% ride on Friday before settling up 330 points up 1.4%. over the course of the 5 days of trading there was a 6% range from highs to lows. Continue reading

Plunge Protection Team leaving fingerprints on Tuesday’s market moves

There’s something rotten in the markets

On Tuesday morning the Dow futures was down 540 points just before the opening of trading. By 10:30 am the Dow index was miraculously down 3 points.

Over the course of the trading day the Dow moved 1,167. That type of volatility you only see on bitcoin. The index closed up 567 points, but the strange indicator on the Street was that the e-mini futures for the Dow were +920 at the close. These two numbers are normally in the same range and not 360 point difference.

Wednesday morning saw the e-mini futures down 250 points at 6 AM and improve to -86 points at 7:30 AM.

However, looking at the markets — including dollar strength, precious metals and bitcoin — it looks like there is much forced selling by funds that have to liquidate assets before announcing the fund is closing.

I wrote yesterday about the VIX index, which for much of the Trump presidency hovered around 10 suddenly exploded to over 50 on Friday.

I still believe the trigger for Friday’s 666 point decline was the release of the FISA memo by the House of Representatives committee. The idea of corruption and felonious behavior at the top of the Obama Administration  was hinted by all the congressmen who had read the memo.

So once the VIX started to rise on Friday, the funds that we caught short on the VIX had to liquidate other assets to cover the options contract. This selling cascade poured into Monday’s trading.

As I wrote yesterday, there were forces in the stock market futures to bolster Tuesday’s market open after Monday closed down over 1,000 points. My colleague John Crudele and I both see the Plunge Protection Team had a hand in bolstering Tuesday’s open.