Re:S&P 500 triggers 15-minute trading halt for the second ti...
by im3w1l on Thursday March 12, 2020 @03:53PM
(#22561034)
Fascinating! Do you have a source for this?
Re:S&P 500 triggers 15-minute trading halt for the second ti...
by aussiegreenie on Thursday March 12, 2020 @04:15PM
(#22561259)
"The "Plunge Protection Team" (PPT) is a colloquial name given to the Working Group on Financial Markets"
If the PPT has not be working during multiple +7% falls on the Dow, they are not doing their job. President Ronald Reagan created the body in March 1988 after the 1987 crash.
The PPT has been "stabilising" (aka rigging) the stock market for nearly 40 years. How they operate and how much money they make is open to speculation. But it is widely believed that they purchase large-cap thinly traded stocks in the past few minutes before the close to minimise closing losses.
TL: DR - The PPT exists to minimise volatility during difficult times and they are doing their job.
Re:S&P 500 triggers 15-minute trading halt for the second ti...
by im3w1l on Thursday March 12, 2020 @05:04PM
(#22561706)
I'm specifically interested in the claim that they have spent hundreds of billions on call options.
Re:S&P 500 triggers 15-minute trading halt for the second ti...
by neural_thing on Thursday March 12, 2020 @11:22PM
(#22564443)
Yeah, that claim seems really dubious to me.
If you understand which calls they are making and at what times they make them, then you can buy the corresponding put and make a lot of money. That he increased his investment by a factor of 9 in a week or so shows how much money we are talking about.
If the fed stops doing these daily calls though you can get holding the bag. Also in the event of a total collapse you can end up never being able to redeem your gains.
Elite traders know this game and are happily taking the billions that the fed is shoveling to them.
For the public, we'll see the elite doing well and able to afford the inflated cost of goods that results from pursuing this policy over an extended time period when it has repeatedly been shown to be a failing strategy since there are actual fundamental problems with the market right now, such as supply chain issues, likely loss of large numbers of staff, and upcoming mass unemployment and a global Depression.