ES Journal - 2012

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Quote from Spectre2007:

the largest MM's... if you have the largest pockets, and the largest pockets need to preserve upward bias, how would you do it.. even if you have deep pockets, the orderflow needed to move the market can move the market but that money needs to convert itself to cash eventually to maintain buying power.

by converting to cash, you get the consolidation zones..low liquidity moments or time zones are used to move the market and trigger stops. Price gaps down in asian session or price gaps up..

eventually the largest players interest is trigger the stops of the weaker players. If the weakest player is long ..gap down... if the weakest player is short .. gap up..trigger his stop.. but eventually bring price back up... to maintain upward bias.
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from a bullish perspective would you guess the weaker players are long up here, the chart low to high is 2 -88 we are at 79.. http://stockcharts.com/def/servlet/SC.pnf?chart=$BPSPX,PLUADANRBO[PA][D][F1!3!2.0!!2!20] .. edit ,sorry that chart never works on the paste
 
the whirlwind is the largest player triggering the stops of the weakest.. imagine all the longs in the upper 1460 area.. how low would price have to go to trigger their stops and have them call out 'uncle'..

if you sell the market down your taking out everyones longs along the way, they are forced to sell to you..at lower prices.. they bought high and sell low.. as you take price down you cover your order flow from the players selling to you.. you force the weakest player to buy high and sell low.
 
Quote from Spectre2007:

the whirlwind is the largest player triggering the stops of the weakest.. imagine all the longs in the upper 1460 area.. how low would price have to go to trigger their stops and have them call out 'uncle'..

if you sell the market down your taking out everyones longs along the way, they are forced to sell to you..at lower prices.. they bought high and sell low.. as you take price down you cover your order flow from the players selling to you.. you force the weakest player to buy high and sell low.
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i agree and the banks have been doing it since the tarp started,just seems a long time since last pullback,nice read Dan
 
probability wise... all price points below current price are longs..all price points above current price are short... numerically the longs are sitting pretty.. the shorts above current price are fewer...but they are only transiently feeling good.

the largest player is always net long...only a fraction of the inventory is used to move the market..down momentarily.. force the weaker player to buy from you at the highest price.
 
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