Fed fights the tape …

Are they aware that they lose their credibility?

Ok, what happened today? On Payroll Friday?

The day started out with losses in Asia and more problems on the credit markets. Some of the measure sticks of the liquidity problems as the ABX indices showed new record highs.

So Europe started trading and falling and … who would have guessed it?

RUMUOR FED had/has emergency meeting … rate action possible. Then a bit later, a FED member is quoted, that markets should not rely on FED action to be the same always (rate cuts) … says, FED has more means than that.

Around midday (Europe), markets wanted to fall again … CNBC tried to help out the FED.

They gave airtime to Ambac CEO, who said, that company could NEVER fail on their obligations and seemed to be proud that Ambac was even able to raise 1.5bln$ of fresh capital.

Then CNBC reiterated that the FED might be at the ball … creating a short squeeze.

As markets prepared for payroll action, all of a sudden FED was on the wire with new liquidity measures … as we heard earlier … not always cutting rates …

Markets squeezed hard and quick, then as everybody was sure, that rates had not been touched REVERSED quickly and tried for the low.

People thought … if FED acts, numbers should be pretty bad.

Then another quick squeeze into the figures and the numbers WERE WORSE than thought.

ALL IN ALL 120k jobs more were LOST than anticipated (Dec and Jan revised, Feb just worse). But: unemployment weaker than expected … however this was achieved.

So markets made new lows … but without significant price progress until the US market opened.

Opening BELL … the first words of the guy on the floor? BUYERS BUYERS BUYERS!!! PPT anybody???

We reached the daily highs again before the close of European markets, killing any short term shorts but could not even then hold on to the gains.

US markets made new lows … recovered a bit in the last hour … but made NEW CLOSING LOWS!!!

CONCLUSION:

Markets are highly unstable due to reckless Ben & his army of manipulators, but the train is still on track to new lows.

Fundamental picture worsening by the minute. Usually markets should fall out of bed …

Only the ongoing manipulation keeps markets from free falling. This makes it difficult for a trader.

Investors just stay out of that and wait for a bottom.

CAPITAL PROTECTION IS KING!!!

Tags: Ambac, CNBC, FED, manipulation, payrolls, PPT

This entry was posted on Freitag, März 7th, 2008 at 23:47 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.