Will the Plunge Protection Team be around next week?

[cyber888]

So, another notch in the tariff wars. Will the plunge protection team come and save the day?

 

[Snidely Whiplash]

I certainly hope not. I got very few shares of a stock I’ve been waiting for last December. I’d like to buy more cheap in the next couple weeks.

 

[Dtail]

Yeah interesting what the markets will do on Monday. Asia almost definitely down.
Without any further offsetting info, markets could tank down for one day.

 

[audreyh1]

Seems like a lot of the market volatility is due a lot of jawboning about trade wars/tarriffs.

PPT doesn't have to intervene. If the jawboning quiets down a bit, the market volatility will reduce.

Personally I don't like to think of the PPP intervening when market levels are still near recent highs. Seems like a waste.

 

[NYEXPAT]

PPT is just a myth, Market sentiment is what drives the markets!

 

[LOL!]

Although the following numbers are after a bad December, the YTD returns of US stocks and US bonds are about 15% and 9% which are rather excellent, so a plunge would not do much damage in reality.

 

[audreyh1]

PPT is just a myth, Market sentiment is what drives the markets!

I believe it was in action 2008/2009.

 

[NYEXPAT]

I believe it was in action 2008/2009.

Ahh, If you consider the FED,Obama and the entire House of Rep. all on this Mythical team, then I guess so.

 

[USGrant1962]

Ahh, If you consider the FED,Obama and the entire House of Rep. all on this Mythical team, then I guess so.

Well, the real name is the Working Group on Financial Markets and the Fed is on it and it reports to the President. From https://www.investopedia.com/terms/p/plunge-protection-team.asp

The "Plunge Protection Team" (PPT) is a colloquial name given to the Working Group on Financial Markets. Created in 1988 to provide financial and economic recommendations to the U.S. President during turbulent market times, this group is headed by the Secretary of the Treasury; other members include the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities and Exchange Commission and the Chairman of the Commodity Futures Trading Commission (or the aides or officials they designate to represent them).

The name "Plunge Protection Team" was coined by The Washington Post and first applied to the group in 1997.

 

[cyber888]

Ahh, If you consider the FED,Obama and the entire House of Rep. all on this Mythical team, then I guess so.

Mythical during Obama. Not mythical during Trump. Mnuchin heads the PPT very actively.

https://www.americanbanker.com/arti...eos-of-largest-banks-to-talk-market-stability

 

[cyber888]

6pm EST - Dow futures was -350 points. 11pm EST - Dow only -170s. Mnuchin's plunge protection team at work to soften the blow.

 

[NYEXPAT]

6pm EST - Dow futures was -350 points. 11pm EST - Dow only -170s. Mnuchin's plunge protection team at work to soften the blow.

I must have missed the tweet! either way we will be below 2700 soon regardless with a 3% down day within the next two weeks!

 

[cyber888]

It is 7:45 am .... Dow Up .. +200 ... LOL

 

[ShokWaveRider]

Looks like it is just being manipulated (and confused) for someone's personal gain. If one times it right one could make a fortune with all these ups and downs.

 

[NYEXPAT]

So trump tweets at 3.02 am after the futures have rallied! Based on last nights action this 3% down day will be this week and not "within two weeks".

 

[NYEXPAT]

Looks like it is just being manipulated (and confused) for someone's personal gain. If one times it right one could make a fortune with all these ups and downs.

Yeah, 2018-2019 is a real "money maker" for us traders!

 

[Dtail]

Looks like it is just being manipulated (and confused) for someone's personal gain. If one times it right one could make a fortune with all these ups and downs.

That's what I have been telling my friends. All these tweets are typically off market hours. Perfect set up to take on the correct directional positioning for those in the know.

 

[marko]

Yeah, 2018-2019 is a real "money maker" for us traders!

Even despite Friday's down, this "buy and holder" is up 15% YTD

 

[NYEXPAT]

Even despite Friday's down, this "buy and holder" is up 15% YTD

And your 1yr return is?

 

[Aerides]

And your 1yr return is?

VTSAX is up 20% ytd, still.

 

[Aerides]

And your 1yr return is?

VTSAX is up 20% ytd, still. 1yr is about 7% but that's accounting for the back half of 2018 which...yeah.

Still fine with me to stay boring!

 

[kgtest]

Futures up, VIX Up 20% lol..

 

[Beststash]

I'm personally tired of the volatility by tweet. The market has been good to everyone for over a decade and I'm grateful but I wonder if there is a price to pay in the future for this economic engineering that seems to have become the norm. I guess I'm just getting old.

 

[NW-Bound]

Who does not like a nice and steady upward path for the market?

But life is like this, full of unexpected twists and turns. All I can do is to position myself for the case where it may not work out as well as some people expect, and so that I will still survive. Then, I can sit back and watch the show.

 

[marko]

And your 1yr return is?

12 month (August to August) is 5.1%

But we can cherry-pick all day. I tend to go by my 3 yr and 5 yr which are 7.6% and 6.2% respectively.

I mentally set a 6% "expectation" each January and I'm seldom disappointed and often elated by December.