This isn’t organic buying—it’s market manipulation at its finest. Here's how the game is really played.
You might think today’s monster rally reflects a tectonic, bullish shift in investor sentiment, but most of the buying is just short-covering. Bulls are NEVER, EVER quite bullish enough to punch through prior peaks and thick bands of supply. To surmount this problem, the sleazeballs who manipulate markets for a living get bears to do all the heavy lifting.
These voracious sharks, representing the biggest firms on Wall Street, had help from Trump. The announcement of a 90-day tariff truce between the U.S. and China was timed for maximum impact on stocks. The news was held for the weekend, so that bears who have been betting against stocks would be in a panic to cover their short positions when index futures began to trade on Sunday afternoon.
The result was an explosive opening on a gap well above Friday’s settlement prices. Almost no stock changed hands within this gap, but it nonetheless increased the world’s vaporous ‘wealth effect’ by trillions of dollars.
That’s how the game is played. Will the tariff thaw endure after Trump and Xi get together in 90 days? Probably not, since the Chinese president is not known to be a pushover. But the folly and freakish buying that have propelled today’s massive, short-squeeze rally will have been long forgotten by then.
Incidentally, the same fraudulent mechanism has been used to shake down gold prices. Gold has traded as much as $130 lower today, but don’t be fooled. Every sovereign entity on earth will continue to buy as much of the stuff as they can get their hands on. With this morning’s shakedown, they are as happy as pigs wallowing in muck.
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Rick Ackerman