For those of you who are football fans, surely you have heard about the three primary defensive positions...also know as "playing containment". I would venture to say that the same thing is being done in the financial markets.
Given the enormous amount of negatives in the economy, its clear that outside forces are working day and night to prevent a mini-panic in the stock, bond, and gold markets. Just Google the words...Presidents Working Group on Financial Markets - and you'll see what I mean;
RECOMMENDATIONS BY THE PRESIDENT'S WORKING GROUP ON FINANCIAL MARKETS
In football, playing containment works by repositioning your defense to stop the run, protect against the deep pass, etc...
Here is an example of playing containment in football;
If you're anticipating a run to the left, can move a lineman in front of a tight-end to and open a space for a blitzing linebacker.
Here is an example of playing containment in the stock market;
If you're anticipating a run on the stock market after learning that two Bear Stearns funds have lost 91%, and 100% of their clients assets, the Presidents Working Group can ensure stability of the financial markets by buying stock index futures to prevent a sudden drop in stock prices.
Don't you love the "free" markets?
