• "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

Where's the PPT?

ZZZZZ

Gold Member
Gold Chaser
Site Supporter
Joined
Dec 23, 2017
Messages
3,468
Likes
7,365
Location
Northern Arizona
#1
Stock futures are plunging in trading Thursday morning, on top of Tuesday's massive drop. The pause for GHW Bush doesn't seem to have slowed anything down.

Dow futures down 325 and NASDAQ down 111 as I type. Follow the futures here: https://www.cnbc.com/pre-markets/

Thursday could be very nasty on Wall Street.

DYODD
.
.
 

Zed

Intergalactic Chart Arse
Midas Member
Site Supporter
Joined
Mar 30, 2010
Messages
14,154
Likes
12,569
Location
Just behind you.
#2
The PPT uses futures to push market makers into buying stocks to hedge risk. The PPT never actually buy stock... well, that is the way it used to work at the least. My short answer is I'm not sure, save noting that S&P futures volume has fallen right away. Maybe the game has changed? I guess we will see if they have a hail Mary rally late tomorrow.
 

andial

((( member )))
Midas Member
Site Supporter ++
Joined
Apr 1, 2010
Messages
11,072
Likes
11,725
#3
They’re playing 4d chess also.
 

bern

PM bug
Joined
Oct 16, 2011
Messages
98
Likes
109
Location
Texas
#4
The PPT will act when the system is at risk. They aren't there to put a floor on the market. They are there to ensure that the market continues to function. As long as there is liquidity, I wouldn't expect the PPT to do anything.
 

ZZZZZ

Gold Member
Gold Chaser
Site Supporter
Joined
Dec 23, 2017
Messages
3,468
Likes
7,365
Location
Northern Arizona
#5
The PPT will act when the system is at risk. They aren't there to put a floor on the market. They are there to ensure that the market continues to function. As long as there is liquidity, I wouldn't expect the PPT to do anything.
If the PPT doesn't see systemic risk right now, they should all be fired.
.
.
 

ZZZZZ

Gold Member
Gold Chaser
Site Supporter
Joined
Dec 23, 2017
Messages
3,468
Likes
7,365
Location
Northern Arizona
#7
Hmmm,

Maybe the PPT tried to intervene last night.

The sell-off started with a mysterious plunge overnight that caused the exchange to halt futures
  • CME Group says it had to intervene with multiple 10-second pauses to prevent a steeper decline in equity futures.
  • Speculation for the swell in volume and plunge in futures included the news of the arrest of the CFO of the Chinese telecom company Huawei.
  • Traders also speculated that the selling could be attributed to a large fund or funds liquidating a position.
Thomas Franck| @tomwfranck
Published 2 Hours Ago Updated 52 Mins AgoCNBC.com



The stock market sell-off on Thursday began with a mysterious overnight plunge in equity futures that caused the CME Group to halt trading in several intervals.
When futures opened for trading at 6 p.m. ET on Wednesday, the eMini S&P 500 futures fell as low as 1.8 percent in a sudden move on above average volume.

The CME Group said it had to intervene with multiple 10-second pauses to prevent a steeper decline in the equity futures.
A CME Group spokesperson offered the following statement to CNBC:
"Our equity index futures and options markets paused intermittently following this evening's open due to volatility, which triggered more than 40 Velocity Logic events in the first six minutes of trading. All markets operated as designed throughout."​
Speculation for the swell in volume and plunge in futures included the news of the arrest of the CFO of the Chinese telecom company Huawei. The arrest was made by the Canadian authorities on the extradition request by the U.S., a move that some worried could put trade negotiations between Beijing and Washington at risk.

"After we saw this Huawei news hit, it seemingly (and inordinately) contributed to an almost impossible 65 handle drop in Spooz (S&P futures) on the overnight reopen, with 36,700 contracts trading in the first 10 minutes," said a note from the Nomura Securities trading desk.
But traders also speculated that the selling could be attributed to a large fund or funds liquidating a position.

Futures briefly recovered but then eventually fell back to near those lows as traders said the damage was already done.

"After the gap lower inevitably hit more US Equities 'stop loss' limit orders and further bludgeoned trader sentiment, the modest recovery thereafter lost further steam over the very early US hours," the Nomura note said.

The CME's Velocity Logic is designed to detect market movements of a set numbers of ticks up or down in a predetermined amount of time and halt trading if necessary.

The S&P 500 fell 1.7 percent at the opening bell Thursday while the Dow dropped more than 450 points, bringing that index's two-day losses to more than 1,000 points. The moves may also be linked to pent-up market jitters that accumulated when the major exchanges were closed on Wednesday for the funeral of President George H. W. Bush.

https://www.cnbc.com/2018/12/06/the-stock-selloff-started-with-a-mysterious-fall-in-the-futures.html
.
.
 

historyrepete

Silver Member
Silver Miner
Joined
Nov 24, 2013
Messages
1,896
Likes
2,618
Location
driving thru flyover
#8
The PPT will act when the system is at risk. They aren't there to put a floor on the market. They are there to ensure that the market continues to function. As long as there is liquidity, I wouldn't expect the PPT to do anything.
So not to be referred to as the plunge protection team here in this case for sure?
 

Silver Art

Silver Art Bar collector
Site Supporter
Platinum Bling
Joined
Sep 4, 2011
Messages
4,750
Likes
2,823
Location
Tennessee
#9
Yep No worries here. PPT is letting this one slide today................

DOW................currently down 661 points as I type this post.

Like Bern said....................No risk to the system. Still enough liquidity to keep the sqeaky financial wheels satisfied. The following is JMHO but the credit markets would have to tighten to 2008-like conditions to force PPT to take "real action".
 

ZZZZZ

Gold Member
Gold Chaser
Site Supporter
Joined
Dec 23, 2017
Messages
3,468
Likes
7,365
Location
Northern Arizona
#10
Looks like PPT stepped in when DJIA hit -800 and cut the day's losses more than in half.

Let's see where stocks close.
.
.
 

Silver Art

Silver Art Bar collector
Site Supporter
Platinum Bling
Joined
Sep 4, 2011
Messages
4,750
Likes
2,823
Location
Tennessee
#11
DOW down "only" 207 points with 26 minutes left in the trading day. By "only" I mean the DOW was down by as much as 784 points at the low point during the trading day.
 

Silver Art

Silver Art Bar collector
Site Supporter
Platinum Bling
Joined
Sep 4, 2011
Messages
4,750
Likes
2,823
Location
Tennessee
#12
DOW now down "only" 161.75 point with just over 13 minutes left in the trading day.
 

Silver Art

Silver Art Bar collector
Site Supporter
Platinum Bling
Joined
Sep 4, 2011
Messages
4,750
Likes
2,823
Location
Tennessee
#13
Hmmm..................Maybe the markets will finish in the green today. The DOW is now down "only" 117 points with 10 minutes left in the trading day. Nasdaq already in the positive. S&P500 might be positive by end of trading day.
 

Silver Art

Silver Art Bar collector
Site Supporter
Platinum Bling
Joined
Sep 4, 2011
Messages
4,750
Likes
2,823
Location
Tennessee
#14
The DOW going down as much as 784 points and finished the trading day down "only" 79 points is one of those things IMO that makes you go hmmmmmmmm...................
 

ZZZZZ

Gold Member
Gold Chaser
Site Supporter
Joined
Dec 23, 2017
Messages
3,468
Likes
7,365
Location
Northern Arizona
#15
A "miraculous" comeback, started at exactly 11:30 AM. ("Funny" how that happens.)

(5-day view)

djia-120618.jpg


My guess, and that's all it is, is tomorrow will see some carry-through to the upside, but for Monday, "loookkkkk ouuuuutttt beeeelowwwwwww!"
.
.