TRADERS DAILY

SOME PEOPLE DNT THINK  MARKETS ARE MANIPULATED

HW MARKETS ARE MANIPULATED

To see how the smart money moves you need to pay close attention to the price bars on the chart. If you dont know what a price bar is click on the link: http://www.freewebs.com/knightrader/basicsforbeginners.htm

                      As the media keep reporting about the growing concerns in the sub prime mortgage market,and how the dollar continues to weaken,and how the chinese markets rapid expansion is surely a bubble about to burst, the trend is long, as the market goes higher. Anyone short selling based on fundamentals is getting their ass handed to them on a regular basis. The market can remain irrational for longer than you can stay solvent, as someone once said. The smart money decide to take some profits at the end of febuary where there is a healthy correction, which is normal for a bull market that has been running since oct 2006  

Finally, the media sock puppets have got the story they wanted; the market is falling. Feeling vindicated, they start really getting their teeth into it as investors and traders start selling. Is this the start of a new bear market? Lets ask this expert and that expert and all the usual trading gurus.  Give us an accurate  prediction of how far you think the market will fall. Only, tell us in the next 30 seconds before the next commercial break.  

Meanwhile, if you look at that chart around march, with all that selling going on, the market is going sideways- NOT DOWN! The smart money is accumulating the stocks as they get cheaper.The dumb money are selling (supply), they are the weak holders. The smart money are buying (demand), they are the strong holders. When all the supply has been removed, the market will continue to move up. And, if you look at the chart, thats exactly what happens.

From march price moves up until it peaks in mid july breaking into record territory above the 14000 level cheered by the media who now have a new story. The warning bells are ringing for experienced traders who know the rally is not broad based and for those who know what kind of problems are lurking beneath the sub prime mortgage concerns. Meanwhile the media are dragging out their experts to tell us that stocks are still undervalued and 14000 is a base to build on for further gains. This is still a good time to buy, they insist.In august ,right on cue the market starts to drop as the smart money pulls out the plug,having sold into the rally.

Amid high volatility and huge ranging intraday swings off the highs and lows the market tanks to 12455 on the 16th of august but closes at 12859. The high of the day was 12996, a range of 541 points- nearly 3 times the daily average!

The smart money has reversed the market,buying at the low 12455. The dumb money which bought right at the record highs were buying from the professionals who were dumping their stocks into the rally.In secret and under the cover of record highs ,the media cheerleading and the experts telling everyone to buy,they never saw it coming.They never do. Now the market goes sideways while the smart money absorbs the rest of the selling (supply) before pushing up through 13500 in mid september when the short sellers, who were trapped below, finally capitulate (the media kept telling them how bad things were going to get)