I hate to use the words "conspiracy theory", because of the images it conjures up, but this link:
http://www.sovereignstrategist.com/u...12.cfm?const=0
speaks of just that. A conspiracy.
Basically, the writer writes of a supposed "plunge protection team", that works to offset USA market losses by manipulating the market in quiet hours. He notes that lately, whenever the Dow or S&P fall, there is seen a large buy interest in the overnight market which then buoys the price and breaks the downward trend. Interesting.
Especially interesting when applied to today's trade deficit numbers. I was already short Euro. So when I read that just about every analyst thought the numbers would be massively dollar bad, I was ready to pull that trade (at a loss) at the first sign of trouble.
But no trouble. In fact, the numbers were unexpectedly good for the dollar. I'm glad of course, since it sent EUR down to my limit, but that happiness is tempered by confusion. Would anybody have guessed that the US trade deficit would improve? Anybody here on this board? Anyone in the world, really? I can't think of one news organization that called for better US numbers. And yet, there they are. The dollar rallies. The stock market rallies. And the talking (bald) heads on CNBC trip all over themselves to spread the US economy love.
Is this the plunge team in action? Is this something to look out for, next time we see bad news? Something to think about.