Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Metasploit wrote:karasinga wrote:Continuing with last week discussion,
Shall we ask the obvious question? If the interest rate cap news releases were all that bad to banking sector, enough so as to "have" the Market Markers(MMs) drive the price down, then what happened to justify the price rise back up >60%(in almost all banks) before the year was even over? Justification? You see, market prices are determined by the MMs, plain and simple. News comes and goes, sometimes a reason for a move one way or the other, but mostly just as opportunity for the MMs to jerk the price around to wipe others out and steal their money.
This is the market. Prices are not based on any sensible or cohesive and intrinsic value. Prices are what the MMs make them. And the MMs make prices change whenever they want, by any degree they want to afford, in order to wipe others out and steal their money. News, releases, etc., well they are most of the time just used for "timing" of some of the MMs moves. Sometimes the MMs will move prices "according" to the news, sometimes not, and often both ways, and even sometimes one of two ways more than once! We are not trading a "free market.
We are trading a price manipulated market. It has always been that way and it always will be because those with the most money run things, and they run things their way! All this being said, we can still profitably trade. It is all in learning how to under these conditions.
I am not used to long posts but this was worth it... Try re-reading it and think about it.
best wishes Great piece..Some guys called informedtraders used to post very nice articles on smart money,market psychology,shakeouts etc but they closed their websites.However,they still have very nice videos on youtube Shakeout, fakeouts, bag holding, supply test, accumulation, distribution etc. Few people realize that fin markets are manipulated. Listening to broker advice  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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