Volume Patterns & Professionals Getting Out (Emini 4,500 tick)
Woo hoo! Finally. Are we seeing some sanity return? Some willingness to restore fair play in the markets? In case you live under a rock: Goldman Sachs has been charged with fraud by the SEC. Accused of misrepresenting the facts to investors.
OK. Let’s get this straight. I have no problem with Goldman shorting the property market. They’re smart guys and they saw it coming. Good for them. But if you lie to investors about what you’re selling … we’ll see what happens in due course.
Now let’s talk about market manipulation. Do the Professionals manipulate the market? Do the Professionals manipulate the Emini market? Time for brutal honesty: You’re a sore loser.
Yes, the Professionals know where the resting stops are and yes, they run those stops. They gap the market up and down in the after-market while it’s thinly traded and it doesn’t cost them much to do so. They drive the market up to fake a breakout when there’s not much overhead resistance and then slam it down in the opposite direction.
They can do this because they’ve got the capital, they’re smart, they do their research, they’re better connected, they have better information, they work hard at it and if they’re no good – they get carried out on a stretcher.
So what you going to do about it? Concrete suggestion #1: Follow the average trade size – because that way you’ll see the Professionals at work, you’ll see the Amateurs stumbling around and you’ll get a deeper insight into what is really going on.
I’m sorry, but if all you want to do is analyse price and don’t spend the time analyzing volume, then … well Emini-Watch is not for you.
OK, enough ranting. Wednesday’s video on Exhaustion volume showed Professional selling into the Close. Do you think there might have been a Goldman rumor? Huge stories like that don’t just come out of the blue. Today’s video shows the Professionals taking profits and getting set on Thursday – followed by today’s 2% sell-off.
Volume Patterns & Professionals Getting Out (10:09)
And here’s the screen shot of the Emini 4,500 tick chart showing Professionals exiting on Wednesday and Thursday. Nothing really special about the Better Pro Am indicator – just a smart little algorithm for measuring average trade size.
Have a great weekend. I’ll be studying my Emini charts – I’m pumped after Friday!
