...We Welcome You To The Resverlogix HUB withIn The AGORACOM COMMUNITY!

Free
Message: Re: Trading volumes....chart gazing
4
Sep 12, 2017 02:26PM
3
Sep 12, 2017 03:32PM

The chart is a reflection of the actual trading....it doesn't matter whether someone is putting up large blocks on the ask or not, or whether those blocks are there because someone genuinely wants to dump, or if someone is just trying to create a false impression like Cramer talked about in the interview I've posted numerous times.  

The only way that will start showing up on the chart is if those large blocks actually get traded.  

We're back to talking about manipulation, about fomenting false impressions by the big market players....Does it happen?  Of course, that's not in doubt.  Besides the Cramer interview the US Dept of Justice (DOJ) investigated and reported on some of the manipulations employed by Market Maker Broker Dealers...or as we usually call them, MMs.  

MMs work in concert with each other, Broker A will call Broker B and ask him to change his bid/ask to influence the market...to create the impression he needs.  And B complies with A's request because its a 'quid pro quo' system (you scratch my back etc) and B knows he'll need the favor returned at some point.  

Here's a report on it for those who want to read:  

https://www.justice.gov/atr/case-document/competitive-impact-statement-9

Just do "CTRL F" and type in 'moves on request' to jump to the relevant section.  

I know some here think...."oh well, it doesn't matter....the shares are available so just grab them".  That is true to a point, there are different players in the retail market.  Those of us who use discount brokers, and buy/sell from a desk or laptop computer....we can do that.  If someone wants to toss up 200 lots he doesn't have on the ask at $1.35 in an effort to create a false impression that there's a big seller out there...we can slam it and force the seller to go short.  

But there are other players, retail investors with high net worths....one who employ the services ofa full time brokerage.  And call it professional courtesy or honor among thieves or whatever you want....but they're not gonna screw the system that employs them, or bite the hand that feeds them in other words.  The number of retail investors following an obscure thinly traded stock is not great....and eventually a lot (perhaps most) will lose patience and bail out allowing the big players to cover off any shorts that resulted from a maverick slamming the ask with a market order.  

Anyway here's the chart....we're above the 50DMA which I see as bullish, and MACD is still just a hair below that bullish 0 line. Stochs are high and approaching overbought terriotry.  But as always...the volumes are so low it makes the chart less reliable in my opinion.  Actually everything here is my opinion obviously....read the articles, reach your own conclusions:

 

 

8
Sep 13, 2017 11:38AM
Share
New Message
Please login to post a reply