Late-Day Buying Panic Saves Stocks From Worst Start To January In 84 Years

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Zero Hedge: An ugly day, just as we predicted. The bloodbath started in China, which was halted early on circuit breakers…

And that dragged US Futures lower, which were not helped by weak manufacturing data, weak construction data, and not helped by overly confident Fed speakers, but shortly before the EU close a huge block sucked up all their liquidity in futures and stalled the selloff. We rallied back to VWAP around 1995 in S&P then faded…”

Opinion: That huge block (buy orders for stocks) that sucked up all the liquidity is precisely what we posted on December 30:

The plunge protection team (PPT) was created to shore up markets. To buy when everyone is selling and vice versa.

The team consists of the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the SEC and the Chairman of the Commodity Futures Trading Commission.

The team will always win – like the house in a casino.

Moral of the story, don’t fight the team.”

It was a classic PPT buying spree. The global market was getting crushed when Whamo-Batman, right before the close the PPT swooped in to save the day.

Knowing that the market would be manipulated is why the Fed governors would be overly confident.

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So who knows what the PPT has in store for today?

Unbelievable, isn’t it?

See Headline “Asia Stocks Erase Drop as China Equities Fluctuate; Oil Climbs: @ BPTnews.org

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