Despite expectations to the contrary, Hilsenrath called the central bank’s non-move. Stocks sink like a rock, then rocket modestly up again as HFTs enjoy their fun unhindered.
WASHINGTON, Sept. 17, 2015 – We promised we’d be back with a brief report this afternoon once the Fed released its interest rate verdict—officially at least—at 2 p.m. EDT. That they did, and after you parse all the mush and gobbledygook, the nation’s central bank has decided to leave interest rates unchanged. For now.
Which brings us back to where we’ve been throughout 2015, in a Never-Never Land where HFTs and other assorted rogues trade illegally, manipulating essentially news-less markets for fun and profit while continuing to ruin the portfolios of serious investors, or at least those who remain.
By around 2:15, averages had steadied and then gone back up again. By 2:30, the Dow was back off around 10 points. Now, as we write this, one minute later, the Dow is back up 35. Who knows whether we’ll end the day in the green or in the red? Simple insanity, but that’s par for the course in 2015.
This is the kind of incredible nonsense the SEC has been ignoring now for years. It’s simply the HFTs having their fun, doing their usual front-running and spoofing, selling and shorting into the announcement around 2, then whipping positions back and forth after that to capture hundreds of mini-moves in share prices each time they ran markets up and down. They’ll likely do this for the remainder of the afternoon.
What they should be doing is perp walks, but under this administration, that’ll be the day. Why would they want to irritate those big Democrat donors who run the casino and stuff their wholly-owned congressmen for life (and administration faves as well) full of fresh, ill-gotten funds for Campaign 2016.
You have to trade around this kind of garbage until it settles down.
Meanwhile, Fed-wise, we’re back to “Hamlet” and “Waiting for Godot.” The Fed will raise interest rates. An eensy-weensy bit. Some day. Some how. December is now a good guess for the magic day. But no one really knows, and Yellen’s Fed isn’t telling. It’s all part of the Most Transparent Administration in History that we’ve been enduring for seven years. Genuine, serious investors can be forgiven if they’re starting to feel like Ulysses, who, at a similar point in his wanderings, was wondering if he’d ever see his home again.
No trading tips today, or until we see the HFTs and other crooks taking a few days off to spend all the money they made this afternoon.Click here for reuse options!
Copyright 2015 Communities Digital News
This article is the copyrighted property of the writer and Communities Digital News, LLC. Written permission must be obtained before reprint in online or print media. REPRINTING CONTENT WITHOUT PERMISSION AND/OR PAYMENT IS THEFT AND PUNISHABLE BY LAW.
Correspondingly, Communities Digital News, LLC uses its best efforts to operate in accordance with the Fair Use Doctrine under US Copyright Law and always tries to provide proper attribution. If you have reason to believe that any written material or image has been innocently infringed, please bring it to the immediate attention of CDN via the e-mail address or phone number listed on the Contact page so that it can be resolved expeditiously.