Here's a nice way to boost the market:
Kick out the under-performing components! The Dow engages in this kind of manipulation all the time, most recently swapping Apple (AAPL) in for AT&T (T), who had a nice 100-year run before the American Telephone and Telegraph Company was replaced by a company that makes phones in China. Come to think of it – that's a very good summary of how the last 100 years has been going for America, isn't it?
Well, if the components that get kicked out are any indication of where countries are declining, we should be a bit concerned that Euro Stoxx kicked out Deutsche Bank (DB) and Credit Suisse (CS) this morning, replacing them with ASML (semi-conductors) and SGEF (Construction) in order to prop up Europe's version of the Dow as it begins to falter at the 3,000 line.
Rupert Murdoch (Wall Street Journal) owns the Dow and Deutsche Bourse (DBOEY) owns the Stoxx Index and both can do whatever they want when it comes to manipulating the numbers that global investors use to make trading decisions. Trillions of Dollars invested in ETFs that follow the indexes controlled by these two Top 1%'ers. Whether that makes you comfortable or uncomfortable is probably a good indicator of your political viewpoints…
As you can see from our first chart, these shenanigans didn't even buy them the entire morning before the index plunged right back down from the small lift they got overnight in the futures (though the actual substitution takes place on Monday – so watch out for that!). Europe is down about 1.5% overall this morning, led lower by Italy and Spain, who have their own bank crises to deal with.
As you can see from yesterday's NYSE volume chart, despite the "flat" day on the S&P, what was really happening was that the headline stocks that move the indexes were propped up to mask MASSIVE selling in the broader market.
As I noted in last week's Live Trading Webinar, it's very easy to game the markets on low-volume days because the Banksters and Fund Managers know FOR A FACT that Billions of Dollars from people's paychecks (401K, IRA) will flow into the…