Enter the Plunge Protection Team!

Fellers,

Today we witnessed the Markets, especially the Dow Jones, miraculously saved from the jaws of death.

According to Yahoo Finance:

Stocks Recover From Sharp Losses
Wednesday January 23, 5:25 pm ET
By Madlen Read, AP Business Writer

Wall Street Pulls Off Stunning Comeback From Yet Another Sharp Decline

NEW YORK (AP) -- Wall Street pulled off a stunning comeback Wednesday, surging higher in late trading and wiping out what looked to be yet another massive decline. The Dow Jones industrials, down more than 323 points in earlier trading, ended the day with an advance of just under 300 points...

... analysts were mindful that in the past months, Wall Street has been known to soar one day and succumb the next, and that there are still many economic unknowns for the market to weather. And, given that stocks are so badly beaten down, bargain hunting played a part in Wednesday's turnaround.

According to preliminary calculations, the Dow Jones industrial average rose 298.98, or 2.50 percent, to 12,270.17, having fallen as much as 323.29 earlier.

Before Wednesday's session, the Dow had fallen nearly 10 percent since the start of the year, and it was down more than 15 percent since its record close of 14,164.53 on Oct. 9.

Wednesday's swing from negative to positive territory of 631.86 points is the largest point swing since July 24, 2002, according to Dow Jones Indexes. The largest intraday point swing, a metric that Dow started calculating in July 1995, was a 721-point swing on April 14, 2000.

Broader stock indicators also surged Wednesday. The Standard & Poor's 500 index rose 28.10, or 2.14 percent, to 1,338.60, while the Nasdaq composite index rose 24.14, or 1.05 percent, to 2,316.41.

Advancing issues were ahead of decliners by about 3 to 1 on the New York Stock Exchange, where volume came to a heavy 2.83 billion shares...

... Buying, like selling, can feed on itself and investors may go into the market to be sure they don't miss out on a rally. What needs to be seen is whether these gains will easily be knocked down again...

Alrighty then!

So what the hell happened?

Well, the recent interest rate cut (which is a promise to pump money and inflate the money supply) probably encouraged today's rally.

And it's true that bargain hunting was a big part of what happened today.

We also know that a lot of shares changed hands, and that, according to AP, buyers overwhelmed sellers today. So that indicates that people were falling over themselves to get a piece of the action.

So everything is ok right??


Nope. Your author smells a rat.

Because, nothing has changed. The Fed has only promised to inflate the money supply, and nothing more. We still have all of the very nasty economic trends that we had before. Millions are still going to be foreclosed on, consumers and businesses are starting to feel discomfort (as the real pain, in my opinion, has yet to begin), and the tug of war of inflation vs. deflation is far from over.

So why the massive rally?

I'm going to go out on a limb and say that massive Plunge Protection Team intervention took place today, in addition to the bargain hunting and bullish optimism.

As the article said earlier... buying can lead to more buying, especially those who are desperate to cover their short positions.

It's my personal opinion that our Money Masters and, according to Jim Cramer in his book Real Money (p. 278-280), Big Wall Street firms just love to put the squeeze on rivals who are in deep, vulnerable short positions.

Speaking of Money Men, read this article to find out how they do business, and which famous Central Banker they had on the payroll at one point in time.

Taking a look at a chart of today's Dow Jones activity:




Note how the Market is flat and trending downward until about the One O'Clock hour, when it powers it way from negative to positive territory, to the tune of 631 points!

Now, take a look at this article by Mr. Rick Ackerman. He has a chart that you've GOTTA see!

In summary:

We know that government intervention [a][b] in various markets happens on a regular basis. And, while I'm not saying that none of today's stock market miracle wasn't genuine or organic, I AM saying that one has to be cautious at all times while playing in the Golden Nugget a.k.a. the U.S. Stock Market, because there are MANY vested interests who desire increased stock market growth no matter how much damage such interference will eventually do to the economy and the People at large.

We have a very long way to go before jumping into the Markets headlong.

One should ALWAYS be cold as ice and emotion free when evaluating stocks, bonds, gold and precious metals, or whatever one chooses to invest in. Superior companies and rock-solid metals are worth owning no matter what the Market decides to do, and the faithful investor will be rewarded at some point for holding them.

However, regardless of mysterious 600+ point gains, one should look at the underlying social, economic and political factors that can and will eventually destroy our inflated economy and our lavish standard of living, and position himself appropriately.

Don't Sleep!

Toku.

Brought to you by Wu-Tang Financial.