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tronically printed cash and buy markets through some large<br />
unknown buyer’s account. That buying comes out of the blue<br />
at a time when short interest is high. The unexpected rally<br />
strikes blood, and fear overcomes those who were betting<br />
the market would drop. These shorts need to cover, need to<br />
buy the very stocks they had agreed to sell (without owning<br />
them) at today’s prices in anticipation they could buy them in<br />
the future at much lower prices and pocket the difference.<br />
Seeing those stocks rally above their committed selling price,<br />
the shorts are forced to buy – and buy they do. Thus, those<br />
most pessimistic about the equity market end up buying<br />
equities like mad, fueling the rally that the PPT started. Bingo,<br />
a huge turnaround rally is well underway, and sidelines money<br />
from Hedge Funds, Mutual funds and individuals rush in<br />
to join in the buying madness for several days and weeks<br />
as the rally gathers a life of its own. (Robert McHugh, Ph.D.,<br />
“The Plunge Protection Team Indicator”)<br />
I will leave it here except for one development that became<br />
public as I completed this manuscript. Bloomberg News<br />
reported on July 4th 2009:<br />
Sergey Aleynikov, an ex-Goldman Sachs computer programmer,<br />
was arrested July 3 after arriving at Liberty International<br />
Airport in Newark, New Jersey, U.S. officials said.<br />
Aleynikov, 39, who has dual American and Russian citizenship,<br />
is charged in a criminal complaint with stealing the<br />
trading software. At a court appearance July 4 in Manhattan,<br />
Assistant U.S. Attorney Joseph Facciponti told a federal<br />
judge that Aleynikov’s alleged theft poses a risk to U.S. markets.<br />
Aleynikov transferred the code, which is worth millions<br />
of dollars, to a computer server in Germany, and others may<br />
have had access to it, Facciponti said, adding that New Yorkbased<br />
Goldman Sachs may be harmed if the software is disseminated.<br />
The next sentence is particularly significant:
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