Many have heard whispers of the PPT, but nobody can prove when exactly they engage in open market operations. It is public knowledge that they are sanctioned to buy equities during moments of crisis, but some have claimed that it goes further than that.
As most of you know, in life, there are very small windows of opportunity that can mean the difference between great success, and equally great failure, and this is also true in the stock market. Certain technical levels, if crossed, can be the difference between a strong rally, or an equally strong sell off — especially if the conditions are right.
Over the years, there have been many instances when the indices looked like they were going to crash, only to miraculously recover for no apparent reason. For the most part, when somebody questions the legitimacy of this unusual price action, they are branded a conspiracy theorist; “take off your tin foil hat”, is the typical response you will get. In 2007, news pundits even went so far as to say that the PPT was a complete myth, and that it didn’t exist at all. Check out this video from 2008
Does the PPT only intervene during times of crisis, or are they far more active than we may think? Asher Edelman, the man who inspired the main character played by Michael Douglas in the movie “Wall Street”, seems to think so. Check out this interview from 2017