Legendary Investor Asher Edelman Says "I Have No Doubt" PPT Behind Market Rally

Tyler Durden's picture

Legendary vulture investor Asher Edelman, the 1980s model for Gordon Gekko, strayed into what must’ve been uncomfortable territory for CNBC during an appearance on "Smart Money" when he discussed his view that the government’s "plunge protection team" is the only thing propping up the current market rally, and said he suspects that it has again been recently een intervening in the market to keep stocks at record highs.

Edelman simply notes that he doesn’t want to be in the markets right now because “I don’t know when the plug is going to be pulled."

Few can explain the market's recent resilience, holding near record highs despite weak economic data and intensifying geopolitical tensions. The main benchmarks have risen for the fourth straight day following last week’s “Trump Dump" despite a terror attack in the U.K., the worst soft economic data since February 2016, and surprisingly low trading volume.

The “plunge protection team” was created by President Ronald Reagan one year after the stock market crash in 1987, when the president called for the creation of the “Working Group on Financial Markets.”

It’s believed – as the name would suggest and as has been profiled on countless occasions on this website previously – that the group’s mandate is to maintain stability in the market and head off any severe crashes like what was seen in 1987. It's believed the group reports only to the president, though the head of the Treasury, head of the Securities and Exchange Commission and Federal Reserve Chairman are also involved. The team, according to Asher, steps in to execute trades on all exchanges when the market isn't behaving as it would like, working only with big banks like Goldman Sachs Group and Morgan Stanley. 

"We have seen the most extraordinary lack of volatility in the VIX since Trump has been in office and it's interesting the night he was elected you may recall the futures came down about 400 or 600 points.

 

You may also recall that the next morning they were even again. Watching plunge protection for years, I had no doubt that's what happened."

That may have been the case in the 1980s, however in recent years the PPT is the collaboration of the NY Fed and Citadel, which are most aggressive during times of substantial market stress and selling, when intervention is needed to stop the downward momentum in prices.

Edelman says he believes one sign of TPP intervention is when a smaller, less-liquid stock suddenly rises late in the trading day.

We’ve noted in the past that there appears to be a rule against mentioning the team on CNBC – with guests routinely getting “Schiff’d” for doing so.

And once again, this time, the "theory" was treated with derision by his fellow hosts.

"I think we all have so many questions here I don't think I know where to begin," Fast Money host Melissa Lee said.

Some audience members were more enthusiastic.

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Arnold's picture

Asher reads the Zero, Larry.

Arnold's picture

My best friend, who is dead, told me that I would like this place.
He had no time to read the comments.
Now he does.

remain calm's picture

The PPT basically manipulates the USD/Yen, everything follows. JUST LOOK AT THE CHARTS. 

Paul Kersey's picture

Perhaps the market is going up, because Trump has decided to "make America great again" by selling off America's public assets to his Wall Street Goldmanites:

"The Trump administration, determined to overhaul and modernize the nation's infrastructure, is drafting plans to privatize some public assets such as airports, bridges, highway rest stops and other facilities, according to top officials and advisers (aka Goldmanites)."

We will all pay tolls and taxes to the money changing wealth extractors.

BullyBearish's picture

of course, it's no cohnicidence...i kuntner imagine it any other way...

Mr. Universe's picture

Isn't that the way it always goes when you can't pay your note to the Tribe? Ask Greece.

Multi's picture

"The 'plunge protection team' was created by President Ronald Reagan one year after the stock market crash in 1987, when the president called for the creation of the 'Working Group on Financial Markets.'"

Oh Reagan, that beacon of capitalism and free markets!

Debt-Is-Not-Money's picture

RWR "lost" his presidency when he was shot. At that time HWB assumed the presidency (constitutional) but never gave it back (unconstitutional).

HWB created the PPT not RWR.

GUS100CORRINA's picture

Legendary Investor Asher Edelman Says "I Have No Doubt" PPT Behind Market Rally

My response: There is absolutely NO DOUBT IN MY MIND that forces outside of normal price discovery mechanisms of free markets has been in play for decades. If you want real evidence, look at monthly charts for the following: TVIX, SQQQ, SDS, FAZ, QID, etc. Below are a couple of example charts.

http://www.finviz.com/quote.ashx?t=TVIX&ty=c&ta=0&p=m

http://www.finviz.com/quote.ashx?t=sqqq&ty=c&ta=0&p=m

These graphs are impossible unless there was a persistent buying force behind the markets. I believe many call this the BERNANKE PUT.

http://www.kppfinancial.com/Media/Default/Other/Insider%20Bernanke%20Put...

If anyone ever says that government is NOT involved in this charade, you may politely respond to them: "Sorry. you are very mistaken."  I would use other words, but this is a family program.

yogibear's picture

Easy to see the PPT if you follow the trades. The SEC would say but their friends and relatives are front-running the trades. Dishonesty? is a Hallmark of the SEC.During low volume and selling how many times have we seen instances where the market is dropping to correct and like magic, out of nowhere comes buying? They know it's the only facade they have left,

Mr. Universe's picture

...and he knows where Eric Braverman is.

Mr. Universe's picture

Good question. He got a new job out here on the left coast with the big announcement and all yet mysteriously no one has seen him. Not one recent photo I can find, or even a real tweet. Yet this is completely ignored by the MSM. Heck i would want to plaster his ugly mug all over the place just to shut stupid phucks like me up. Yet it hasn't happened. I guess he must be off on special assignment, yeah that's the ticket.

AVmaster's picture

Yea, had a look at his twittard account.

 

It looks like a bot took over.

Alfred's picture

His name was Seth Rich

It's a shame the news has cycled round to forget him...

LONG Bullshit.

SHORT Truth

Beam Me Up Scotty's picture

"We will all pay tolls and taxes to the money changing wealth extractors."

So what do you think is happening right now?  For the last 100 years?  We pay tolls and taxes to government, government is the wealth extractor.  Get it??  If you work, you are living on Uncle Sam's plantation.  He is the slave owner.

orifice of omaha's picture

This is crazy talk. 

If you had a lot of money  and you lived in Europe or China, where would you want to keep it? The USA, right?

Euro will crash, who knows for China or Japan. Only one place to put funds. The USA is the cleanest set of dirty clothes. This will continue, I think.

Arnold's picture

Certainly the least corrupt of all you mention.
Not saying much.

Mr. Universe's picture

What is this "money" you speak of? All I see here are Federal Reserve Notes, which are not money, but debt.

MK13's picture

This will continue until it won't. When Great Reset starts, US will be the worse place to keep your money because pterodollar lift will be gone, while political correctness/reverse racism in politically charged and demographically divided country full of underskilled, self righteous millenials will prevent any positive economic growth or social cohesion. You will be better off in Central Europe.

espirit's picture

 

 Unarmed?

 

I don’t fucking think so.

 

What’s in your wallet?

   

RockySpears's picture

Try the UK.

 

Not quite USA style Bigly guns, but Bigly enough,

http://www.ukpreppersguide.co.uk/uk-weapons-and-firearms-law/

 

Lots of sea all around.

Reasonable weather.

I live here, if you need shelter, and have Gold or Silver, call me.

 

RS

OverTheHedge's picture

Pterodollar. I like that.

ptero-(Prefix)pertaining to wing or featherOrigin: From ??????

Used to be gold, now light as a feather.

JB Say's picture

Least worst. By a long shot. The fear porn crowd does not get it. They're all butt hurt over their shorts.

Dilluminati's picture

USA cleanest shirt in a dirty basket.

In a world of zirp, bad chinese banks, greek debt, Puerto Rico debt, buy that bond and a small savings in PM.

 

JamesinNM's picture

Perhaps Trump was turned by the state to get with the state agenda. Read interview with Assad about America; hits the nail on the head. Trump neither decides nor controls anything. He does as directed, or else.

HardAssets's picture

At least we're not evil Commies with central planning, propaganda, and a police state.

Uhhhhh . . . . . never mind.

Mr. Universe's picture

You know, some days it's really hard to keep your head from exploding.

Arnold's picture

Really, leave that obligation to the current progressive iteration.

espirit's picture

 

It’s why I drink too much.

 

That’s my excuse, and I’m sticking to it.

  

Zorba's idea's picture

It's called "ping-pong" until the USD is long gone.

JRobby's picture

CNBC clowns are like The Knight's Who Say Ni. They cannot hear "PPT".

The curtain pulled back shows there is no reason for CNBC to exist. Fuck imbeciles. 

ejmoosa's picture

There are stocks that are being allowed to plunge.  That's because they have no impact on the "indexes" so that every day we get the propaganda about how good all things are.

The weighted indexes are the worst.  The more they contribute the more easily they are manipulated to keep the indexes rising.

Give Me Some Truth's picture

An Important detail in Tyler's summary of this CNBC appearance is that the hosts/talking heads "treated with derision" the guest's theory. This is their MO for dealing with anyone who presents views that don't gibe with the official meme. This attitude has become a form of "group think." If you don't think like the group - agree with the group - you will be dismissed and made fun of. Thus any talk of rigged markets never gets any real currency (excuse the pun). This article referenced the possibility that the stock markets are rigged or manipulated. The more egregious example of ostracism and derision is any person who might mention that the monetary metals "markets" are rigged or manipulated. Any person who makes such a claim will certainly never be invited back on air, and after such a claim is made it will receive the Ron Paul "kook" treatment from the hosts. It should be noted that these news organizations have never launched their own investigations into these claims, and never will. They also, tellingly, never talk about Audit the Fed and have never advocated for such an audit. Such an audit would almost certaintly reveal that the claims they have long dismissed as ridiculous are in fact the truth. If they are so confident that markets are not rigged, and that the Fed is in no way involved, why not let an audit occur? That they fight this, or ignore calls for such an audit, really tells us that they know these claims are factual. Such an audit would reveal that they have been conspirators in covering-up the truth.

GodHelpAmerica's picture

Edelman is wrong about one thing: "the fed isn't happy about this..." The fed IS the one behind this; it is their credibility that is most at risk. Moreover, the PPG activity went into hyperdrive once they began "tightening" in 2015 and it has increased in frequency ever since.

clade7's picture

Now a days, "Wealth is no respector of effort or intelligence!"  All I had to do was listen to Fonestar and take his advice on Bitcoins a few years back!  But NO!  I think too much for my own damn good!  Plus, the goldbuggers here talked me out of it..."If you dont hold it, you dont own it" bullshit!

Arnold's picture

Pffft.

All I had to do is own the mineral rights to a small acreage in Western Pensyltucky and, Badaboom a fortune.

Money Boo Boo's picture

USA is NOT capitalism, it's a Ponzi-Socialist scam propped up to continue its Rentier skim activity by the likes of the PPT. Anyone who says the USA is capitalism can suck my balls.

Arnold's picture

Well you may be correct, what ever you typed.
Try making less points in more words.

Money Boo Boo's picture

try separating your head from your ass

 

 

 

 

 

 

yogibear's picture

Just like a scripted play:

As not to allow the market to fall.

Kashkari adds to dovish caution on rate hikes at Fed

https://www.reuters.com/article/us-usa-fed-kashkari-idUSKBN18J1YP

The Fed  will not allow price discovery.

 

 

hxc's picture

Well duh, central banking's mere existence warps the markets.

garypaul's picture

Just to be brutally frank, and to play the devil's advocate, I think it's important to note that this guy now runs some kind of "art" fund, and it would be logical for him to "talk down" the stock market (and recommend art while he's at it). 

Just something to keep in mind. (I myself believe there is a plunge-manipulation going on)

Lets Buy The Dip's picture

The clue will come from the XLF or the financial sector. 

VERY DISTRUBING chart... Good accurate and SHOCKING info here ==> CLICK HERE READ THIS SHOCKING REPORT.