Did TPTB hit the financial markets?

[hlat]

Did TPTB hit the financial markets starting on Friday February 2 and continuing on Monday February 5? I'm seeing headlines on February 5, 2018, of the biggest one day point drop ever in the Dow (to put it in perspective, it was less than 5%, so much less than 1987 Black Monday's 22% one day drop).

If yes, why did they do it?
Did they do it to try to distract the people from the public release of the FISA memo?
Did they do it to punish Trump for the public release of the FISA memo?
Did they do it to try to turn the people against Trump?

In previous sessions, they've said that the economy at our level is "entirely manufactured."

A: ... The economy of our 3rd density world is entirely manufactured. The forces that control it are both 3rd density and 4th density. There are conflicting opinions in the 3rd density sector right now as to when, where, and how to institute an economic depression. This has been "in the works" for quite some "time" as you measure it. So far, the forces arguing against institution of a collapse have prevailed. How long this condition will be maintained is open to many outcomes. Also, please be aware that the state of the economy is entirely an illusion. In other words, the world economy performs solely based upon what the population is told to believe.

 

[BHelmet]

You know... the more I think about it and vibe it out... the more I think you are right on the money.
A loud message to Trump... If and when the markets rebound, I will be looking for what corresponding actions take place.
A very provocative hypothesis indeed...

 

[Bobo08]

It sounds like the crash is pretty bad:

_https://www.zerohedge.com/news/2018-02-05/risk-parity-short-vol-market-rig-just-blew

The Risk-Parity/ Short Vol Market Rig Just Blew Up

Throughout 2017, I noted that “someone” was slamming the VIX lower to force risk-parity funds to buy stocks.

If you're unfamiliar with risk-parity funds, they are meant to achieve "risk parity" for investors by buying or selling stocks and bonds based on the perceived risk in the markets via the VIX.

If the VIX is falling, meaning the perceived “risk” in the markets is falling these funds sell bonds and buy stocks.

If the VIX is rising, the perceived “risk” in the markets is rising these funds BUY bonds and SELL stocks.

The problem with all of this is that these actions are ENTIRELY based on algorithms, NOT human decision making.

Put another way, whatever the VIX does, these funds will be buying or selling stocks and bonds without judgment.

All told there were over $500 BILLION allocated to these funds globally. So… if you wanted to force a stock market rally, all you needed to do is push the VIX lower and BOOM, you’ve got $200 billion or so in buying pressure hitting the stock market.

This market rig occurred almost daily throughout 2017. And the end result was two fold:

1. Retail “mom and pop” investors came into the stock market in ways not seen since the Tech Bubble.

2. “Shorting volatility” became one of the most crowded trades in the world.

Indeed, discount broker TD Ameritrade noted that retail investors were more exposed to the stock market in 2017 than at any other period in history. The CEO for the firm noted that client cash levels were at the lowest in history.

Put another way, “mom and pop” investors were “all in” on stocks. And much of this enthusiasm was due to the market going straight up courtesy of the risk-parity fund gimmick I mentioned earlier.

The other problem with the risk-parity fund market rig is that it convinced investors that “shorting volatility” was a virtual ATM. It became so insane that at the end of 2017, Short Vol. ETFs were larger than ETFs for entire countries.

This whole scheme is now over. As I write this, some of the short-Vol ETFs have collapsed over 60% in the after hours. And risk-parity fund selling of stocks has just begun.

Indeed, it’s very possible that the Everything Bubble I’ve been writing about for years has begun to burst. The time to prepare your portfolio is NOW before things really get ugly.

It is also suspicious that this crash occurs right after the FISA memo was released. Now, few people will pay attention to what the memo says anymore.

 

[Siberia]

Not long ago (in November 2017) the chief investment strategist at Bank of America Merrill Lynch Michael Hartnett made the following 2018 prediction:

2018 GLOBAL INVESTMENT STRATEGY OVERVIEW

“The air in risk assets is getting thinner and thinner. Asset returns will likely peak in early 2018, but
optimism fueled by recent stunning returns and historic low volatility could be followed by a sobering
flash crash a la 1987, 1994 and 1998 as central banks, the major sedative of volatility, start to withdraw
liquidity.”

<snip>

Signs of bubble-like behavior abound: We’ve seen record-high art prices, soaring rates for cryptocurrencies,
exponential Nasdaq growth and U.S. Treasuries, the first robot-managed ETF, climbing global
debt levels and Argentina issuing a 100-year bond (the country has had eight debt defaults in past 200
years).

In late January 2018, they also predicted the following: BofA indicator has sent its strongest stock 'sell' signal in 5 years

An indicator with a perfect track record just sent a 'powerful' sell signal

Investors poured $33.2 billion into stock-based funds last week, another indication that the market may be overheating.
Bank of America Merrill Lynch's "Bull & Bear" indicator is sending a sell sign, which has been accurate 11 straight times since the firm started tracking it in 2002.
The indicator points to a technical pullback for the S&P 500 to 2,686, which would be about a 6 percent drop from the current level.

 

[Dirgni]

1. Retail “mom and pop” investors came into the stock market in ways not seen since the Tech Bubble.

“Mom and pop” investors had a lot of losses after the Tech Bubble and also after the 1929 crash.

When everyone and their dog is buying stocks then this is a strong stock selling signal. It is time to leave because a crash is normally not too far away. During this last time before a crash banks etc. try to sell their future crashed stocks (et al) to the person on the street to get rid of their risk.

On top of this the problems that caused the last crash in 2008 were not removed but only hidden. The stocks were high because the interest rates were low for quite some time now. The stocks were very high for a long time and a crash is due earlier or later IMO.

 

[Ruth]

What if this was a natural event and entirely predicable? A re-adjustment?

 

[endescent]

It’s symbolic of an energetic breakdown.

 

[Neil]

I'd say that the general answer to this question is that the supports underpinning the markets are getting increasingly unstable. As the Cassiopaean transcript says, the market contains about as much truth as the latest postmodernist philosophical craze. I think the general situation highlighted in the transcript still holds, no one really wants an economic collapse. If my Faction A/B/C model of the US deep state is correct, then I would say that Faction A wants a gradual, controlled demolition to reach their ideal end state, Faction B needs a boom, at least in the short term, and Faction C doesn't care either way.(https://cassiopaea.org/forum/index.php/topic,45338.msg748762.html#msg748762) You also have foreign concerns such as China and Russia, who probably want the US to have an orderly collapse, so that the US military industrial complex is defanged, yet not desperate. Faction A has the most directly noticeable influence and is taking a lot of heat right now, because their underhanded support of the Clinton/Soros axis is being exposed. A lot of money is tied to them, and if too much of the truth comes out, they may take a "if we can't have it no one can" approach and try to burn down the markets. I think Faction A is being set up as the sacrificial lamb, and B and C are going to try and mitigate the situation to some extent. There is also a small but significant possibility that Faction C will make a miscalculation, and everything from the falsification of religion, to secret history, to mind control, to UFOs will suddenly be part of the mainstream discussion. If that occurs, the markets are basically guaranteed to crash, and possibly become totally irrelevant. You also have earth changes intruding into the picture in subtle ways. So you have all of these people operating somewhat at cross purposes behind the scenes and it is causing the consensus reality they have created to sway like a tall tower in a powerful earthquake. Is the earthquake powerful enough to bring it down?

I've been wondering how it all ties into the Cassiopaean prediction of "soon there will be no money." It seems like they missed on this one, but were they really wrong or just a little off? I've been thinking that they would be able to keep the thing going until the deluge of comets arrived, but I really have no idea.

 

[hlat]

The FISA memo shows the man behind the curtain for all those who do not believe in "conspiracy theories" and only believe what is reported in the mainstream news.

Then the Dow has the largest one day point drop ever right after the FISA memo is released. There is follow through today right now and almost certainly tomorrow.

 

[herondancer]

The latest Cs session had a bit to say about the market's gyrations:

(Pierre) Talking about cometary bombardment, years ago it was mentioned in a session that the financial markets are totally rigged. Every day we have proof of that. I'm wondering will ever reality catch up on this financial illusion, or is it kind of totally disconnected. Can we...

(L) Ask one question at a time.

(Pierre) Can financial markets be disconnected forever from reality?

A: No.

Q: (Pierre) So the next crash, will it be engineered by financial operators, or will it be reality catching up the financial illusion?

A: Latter mostly.

(Scottie) It can be partially engineered, and then reality catches up and makes it REALLY bad...

A: Yes

Q: (L) Yeah, they think they're going to be able to take it down and bring it back up again.

(Scottie) Exactly. They think they're going to be able to control it, and then: OOPS!

(L) And then it's going to be like having a tiger by the tail.

(Scottie) That's going to be awesome. I think...

So any fallout from market shenanigans are really gonna bite the PTB on the tush. They've distorted market reality for so long, things are spinning out of their (illusionary) control. But they will still do their best to make Trump the fall guy. And who knows who will be positioned in the wings as the new saviour.

 

[hlat]

The Dow today had a 2 day drop roughly equal to the February 5 drop. The 200 day moving average is just below, and a fall below that could confirm that a repeat of 2008 or 2001 is underway.