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Interesting article.

Extracted from Hlebroking News:
( Refer to chart 1 and 2 below)
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What’s up with the US?!


Many Asian traders have been spending sleepless nights over the last few days, logging on to
Bloomberg or CNN to check out the US market in the wee hours of the night/early morning. It
is not surprising considering the critical importance of the health of the US market now.
For the last two days from 10pm – 11pm some traders can be seen rejoicing and then going
back to sleep, thinking that the seemingly positive US markets will ignite a rebound in our local KLCI the next morning – only to be rudely surprised by negative US market and subsequently
negative local markets the next day. What’s the reason behind these intra-day market turns?


The above Dow Jones chart (Chart 1) shows that we have had opening gap-up sessions in the US for the last two trading sessions. During those gap-up sessions, prompted by positive Index futures, the market tried to rebound, only to regress towards negative territory throughout the day. This trend suspiciously points to the doings of the Plunge Protection Team (PPT) in the US which is more formally known as the Working Group on Financial Markets (WGFM).

The Plunge Protection Team
The PPT was first created by then US President Ronald Reagan to prevent a repeat of the US
market crash in 1987. The PPT was revived in 2006 by the newly elected Treasury Chief
Henry Paulson. The market savvy Henry Paulson was formerly the head of the influential
Goldman Sachs Group and in 2006 was elected by President George Bush to head the US
treasury. Seeing cracks in the US economy, Paulson revived the PPT in 2006 with the powers
to support the Index, Currency and Credit Futures to prevent any US market meltdowns


PPT serves two important purposes
At this juncture, the PPT serves two important purposes which is preventing panic crashes of the US market and more importantly
facilitating interest rates cuts by preventing the drastic decline of the USD. With impending rate cuts scheduled on the 30th of
January, the importance of the PPT is further magnified in ensuring a smooth depreciation of the USD by intervening in foreign
currency markets. Currently, the PPT seems to be succeeding in preventing a drastic decline of the USD as the current USD-JPY
rate of 106 is holding strong despite the drastically weak trading sessions of the Dow Jones for the last one week. However, with
rate cuts coming by the end of the month, it is unlikely that this level will hold.


Traces of the PPT
For the last two trading days, the US Index futures has been in positive territory during Asian trading hours which has marginally
lifted some Asian markets to positive territory such as the Nikkei, Shanghai and Hang Seng market. It could be ironically argued
that the PPT measures were more successful in lifting Asian markets as US markets still closed negative on Friday night.

Market manipulation / intervention
Skeptics may argue that artificial market manipulations rarely last. However, the PPT’s moves are not in perpendicular opposition of
current market trends, but merely ensuring the orderly regression of markets. Traders should be aware that equity markets could be far worse than they are right now and take advantage of this current stable markets and upticks to cut holdings in anticipation or
more downside in the future.

Chart 1

Chart 2

Well, I did not. Did you?
We all know the market will *blindly* follow US market eventhough the market is stink!
i can understand sectors which highly related to US market such as manufacturing would be affected. However, i can't understand sectors like Properties, Plantations are also affected by US market. I suppose there's nearly zero correlation in these sectors.
Well, it seems like we are still colonized by the western, even after 50 years of independence.
Wake up people!!!!!!

To me, a newbie in the market.....this is called as MASS PSYCHOLOGY.

When the market is filled up with ( >90% ) speculators, I wonder if someone will think rationally about well, " We are not related to the US market....by buying this and that!"

Sleepless? I was, till the last 2 counters hit on the stop loss 2 days ago....and sold. Maybe not yet reach the prof level....still much to learn from here.

Sadly......they don't allow us for shorting except in FUTURES..Would really like to have a try on it.

Heeee......!

From the 1st day I heard of PPT, I still have not made my mind if they actually exists.. not that it matters heh heh...