What Really Drives Prices? RAMOUTAR REPORT VOL. 6

Quote from plumlazy:

Ok here's my ignorant and malicious revelations.

Since I don't care if anyone thinks I'm right or wrong about this and I don't really even care if I'm right or wrong about it, I'll just say that these are my *Suspicions.*

DA BOYZ drive prices :D - that's right, I think that possibly ole gdz 1-17 isn't so far off the mark with his "manipulators" theories.

While much is to be said for support/resistance and the emotions of the bagholders waitng at the prior S/R etc., sometimes, not always, it's still DaBoyz that are going to determine whether or not it holds or breaks out.

For instance, have you ever wittnessed GSCO or MSCO holding a stock and taking on all comers for hours on end, when almost all of your favorite T/A would indicate otherwise? I call it "Big Fish Eats the Market" :D

I believe that these big fish or other big fish play the futures and every other market that they so desire, whenever they desire.

I also suspect that some big fish may be being handed freshly printed money from time to time (actually pretty often) by the Fed.
I've also heard tell that the Federal Reserve Bank is a privately owned bank.

These are my *suspicions* I do not intend to debate them on this thread. I don't care who/what moves the prices, only that the prices move. What I care about is getting on the hayride after it starts moving and I can identify the path of least resistance and getting off the wagon before the darned thing stops and reverses. (different timeframes for different wagons :) )

Seeing as how prior support and resistance often do create obstacles then yes, I pay attention to them and often sell at [R]and buy at , but I also believe that it's only support if enough traders, market makers, buyers, manipulators, whatever, believe that it's support and likewise for resistance. (therefore I tend to wait and see if I can see rather than try to do it myself with my piker hand :) )

I also suspect that sometimes T/A becomes a self fullfilling phophecy. BUT ! - when DA BOYZ :D are ready to take the most from the most, all the T/A in the world can be tossed out the window cause we are going for a ride!!! YeeHaa !!!

When the market tells T/A to kiss off, I just do my best to try to recognize it as soon as possible and adapt. Sometimes I see it coming and sometimes I get blindsided. (but what the heck, that's what I use stops for)

Just my ignorant and malicious suspecting 2 cents on the mattter. :)

plumlazy
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I definitely agree with you, ”day boyz” certainly abuse the many privileges they have to use direct access trader orderflow in their favor. I made markets fro approximately 4 months in between my transition from stockbroker to “soes” trader in 1995. The games these guys played was so damn obvious, and back then no one really cared. I traded with and worked for the firm that recorded conversations that contained verbal “threats” by market makers, because we used to cut down the spread, which in essence cut their profit potential. The NASD has certainly placed the interests of the market makers, before their responsibility to protect the public. The SEC threatened to dissolve the NASD, and take over. The SEC censured and fined the NASD, the first time in history that an exchange was censured and fined. Later after much investigation, 40 plus market makers (including all of da boyz) settled for $1 BILLION, the largest settlement (outside of tobacco). Many traders got back their fair share of that money.

You can see the documentation here:

http://www.nasdaqlitigation.com/

http://www.sec.gov/news/speech/spch398.htm

I’ve definitely witnessed GSCO and the like hold up stocks for 100 shares with reserve for millions. I’ve got lots of scars on my knuckles from punching monitors, and have broken lots of keyboards. In 1997, three traders and I called DBKS (old Deustche Bank MPID) and asked for the guy who makes ERTS. He answered and we asked what the F… he was doing and told him we would wait for him outside of his office. The head traders at GSCO made all of their traders read “The SOES Bandits Guide” and made many of them take the training classes.

The game has definitely changed; along with TA I use other indicators, and also monitor the buy and sell side “axes” (da boyz). I use S and R to plot entry and exit, and like you say look for confirmation from da boyz. These guys definitely use the self-fulfilling prophecy of TA and their very one sided privileges to spike it down or up and shake everyone out. That’s one of the reasons I started swinging more, after 8 years of daytrading. I like getting on the hayride as it starts to move too…by watching da boyz you can sometimes see when they’re about to tip it over or set it on fire :) .

BTW….if you thought your post was ignorant and malicious then it would be nice if others were as ignorant and malicious as you :)
 
Quote from RAMOUTAR:




What Really Drives Prices?

Demand, Supply, Greed, Fear, Support and Resistance
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Support and resistance are really specialized demand and supply price levels so I submit that you could shorten the list above to 4 items. As an aside I would lengthen the usual list of emotions involved in trading (greed and fear) to 3 by adding sloth.

:)
 
Quote from Trend Fader:


I disagree...

In reality the most profitable markets are trending ones. Thats how everyone made millions back in 2000 trading tech.

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Dear Trend Fader,

Things are perhaps not that simple. Following your argument could one not say the worst markets are trending ones? That's how everyone lost millions from 2000 staying in tech. I realize that I implicitly switched your word "trading" to "staying". I did not mean to play a trick on you but the common guy did better by not "trading" too much prior to 2000.

Before you can make money in any market you should know what you are doing and what fits you best.

Nononsense
 
sorry to be off-topic, but is this the real jai ramoutar? he worked for all-tech when the unfortunate mark barton incident occurred.
 
Quote from simstim:

sorry to be off-topic, but is this the real jai ramoutar? he worked for all-tech when the unfortunate mark barton incident occurred.
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Yes you're correct.
 
Quote from RAMOUTAR:

Support and resistance are temporary floors and ceilings for demand, supply, greed and fear. The area between these two zones is where we find the most opportunity.
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For many traders, including myself, this isn't the case at all.

I find my opportunities - and they are plentiful - when support breaks down and fearful longs rush for the exits.
 
Quote from lindq:



For many traders, including myself, this isn't the case at all.

I find my opportunities - and they are plentiful - when support breaks down and fearful longs rush for the exits.
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The statement referenced trend. I too find many opportunities in breakdowns, especially the pullbacks. I'm finding more breakdowns and pullbacks, as price action tightens up in the larger timeframes.
 
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