I wanted to do a midday post to demonstrate my usual premise that the price action will often do the exact opposite of what many are expecting.
I also wanted to say that it is ridiculous that every talking head on radio and TV is trying to explain that this move is due to some fundamental reason.
If I was forced to value this market based off my daily experiences with those in finance and the public in general, I would value this market at close to $0. There is no level of reality with what most "investors" base their decision on. This is a topic that needs to be covered at a different time.
It is all part of the daily manipulation. These commentators know nothing. Those who speak the truth do not get much airtime because there is little money to be made with the truth.
There is an obvious massive head and shoulders pattern formed over the past week. I was watching this yesterday and told many who I speak with privately throughout the day that I will look for a giant left shoulder squeeze.
My premise was that many retail traders and systems alike look for patterns like this. What better opportunity for the market bullies to squeeze a bunch of suckers then one of the most obvious left shoulders a trader will see?
They squeezed the price up to the left shoulder neckline yesterday, then brought it down a bit just after the open. This caused many to get short. Then they jammed everybody. It was an obvious turkey shoot that could be seen well in advance.
It was not easy to catch with the news and structure but was an obvious sign of tough trading and absolutely no fades this morning.
This move was nothing but technical. Each trade and each pattern has a completely random outcome. The market NEVER repeats itself exactly. The only thing that is constant is the game of faking and squeezing.
This is nothing but a giant poker game where a few bullies take most of the money. The best area for a trader to focus on in my opinion is the interaction with other traders and not the news or indicators that most turn to.
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