Ladies and Gentlemen, may I present…RAGE as expressed in the stock market!
Selling pressure dominated the entire session in a seeming carbon copy of yesterday.
The difference was in the degree of response at the closing bell. Yesterday’s marking the close of 59.55 points chopped down the day’s loss from 1.4% to just .64%. Today’s action eclipsed yesterday: a mindboggling (perhaps a record) 72.74 points or the near elimination of the total loss of 1.03% to just a marginal .1% deficit due to an astounding .93% pump!!!!
This was a sign of a massive hissy fit that had overwhelmed the index managers from two successive days of selling.
So incensed index managers wanted to deliver this message in clarion: We will NOT LET THE PHISIX FALL BELOW 7,750!!!!
One may add: We will DO WHATEVER IT TAKES to send the PSEi back to record highs! All those whom have sold will REGRET!
Rage. Fury. All wrapped in a statement ventilated by a ferocious .93% pump!
And here’s more. In two days a total of 132.39 points or a stupefying 1.7% pump from last Friday’s close of 7,845.49 had been used to shore up the index.
I’m certain that the two day pump has etched a record.
Peso volume difference from yesterday’s 59.55 points pump was Php 2.4 billion (volume variance between regular session and closing). Or a big chunk of yesterday’s pump came was financed by Php 2.4 billion
Today’s record or quasi record was a humongous Php 5.54 billion (Php 12.95 billion minus Php 7.41 billion)!
I’m quite sure lots of third party money are being funneled to take unnecessary risk just to attain symbolical gains.
What cannot be established through regular pricing MUST be attained through price fixing!
Yet such kind of intensive engineered pumps tells us why a BW-SSO blowoff episode can happen!
It has been already happening intraday!
ALL major sectors participated on this D-Day operations!
Look at the staggering price leaps that turned lead into gold (red to green right rectangles)!
To explain some of the biggest movers
SMPH was pumped by a gigantic 4.75% (biggest pump was in December 2015 at 8%) to deliver a fantastic 2.93% return for the day!!!! So from a depth of -1.83% to +2.93%!!! Flabbergasting!
JGS was inflated by a grand 2.9% to end the day up by another remarkable 1.3%!
BDO and SM had been propped up by colossal 2.7% and 1.04% to post 2.05% gain while the latter’s losses were trimmed to 1.02% from 2.06%
Sy owned companies have been favorites of manipulators. Has such actions been meant to implicitly keep the owners' at top spot at the Forbes Philippine richest?
The PSEi could have turned positive, but these issues were “dumped”. These virtually spoiled the party or the objective of a total reversal for the day.
Because bidders were much organised, minority dumps were essentially suppressed.
[Perhaps part of this may also be due to window dressing]
Yes stock market's marking the close spikes ONLY IN THE PHILIPPINES!
This also shows that when the cost of gaming the markets are low, then manipulation flourishes.
Deception, fraud and unscrupulous activities accompany all major market tops [Kindleberger’s sauve qui peut (save himself who can)].
Great examples: Enron in 2000, Madoff and US rating agency-investment bank collusion in 2008 and the “bezzle” or embezzlement according to economist John Galbraith in 1929, from Chapter VIII “The Great Crash 1929” (source)
“In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in – or more precisely not in – the country’s business and banks. This inventory – it should perhaps be called the bezzle – amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks.”
These massive pumps are likely symptoms of the “bezzle” operating underneath.
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