System Trading Journal

I still believe this is a bear market rally (partially contrived), but just commenting that even if it were a bull market, we should still see normal pullbacks. With all this enthusiasm at key support levels, why don't we see big rallies to follow? I believe it's because all the emphasis is put on protecting the doorways and not real buying. They create stability, lower the risk, provide a moderate ROI, and eventually attract more money to the market, changing the overall psychology of the market rather than stupidly throwing money at it. And if they can keep at it long enough, increased consumer and business confidence just might get our economy going and we can live happily ever after.
 
If they can actually create stability, presumably for the purpose of serving their self-interest, they may find at some point that their self-interest is better served by allowing prices to fall. Who knows?

But changing the market would entail altering the demand/supply dynamic, which would alter support and resistance levels. Therefore, the task would be to determine how they're manipulating each other, then respond accordingly. Then, of course, there are all those pesky foreign investors who have to be manipulated as well.

I'd like to see the reaction to a real drop here.

--Db
 
Looks like the risk has temporarily switched from being long to being short after subsequent successful tests of 910 and then 911.75 on the ES. The morning rebuttal of the post 7a.m. sell off looks like it did put in a good floor. I was tempted to play those dips as low risk plays but decided to sit on my hands the rest of the day. My system, being blind to reality, has faired better than me so far this session.
 
Interesting watching the battle on the ES this morning at the critical price juncture 908-911. Nasdaq is waiting to see what happens. Somebody wants us down, and somebody's holding it. I'm staying out of this one for now.
 
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