I want to document some observations on Wednesday's market activity. I felt very disturbed by the trading today. I felt as if I could not understand
it and I quickly began to have feelings of self-doubt and worrying that I was wrong in my interpretation of the cycle and the signals. I am very tuned
in and I definitely felt shaken. Another trader I spoke to today had basically the same feeling about today's sell-off. It was not expected. It was
definitely noticed. My friend (who does not know the cycle, but has a degree from a respected university) said that he believed today was a fluke, a
strange day that really did not indicate a further sell-off, but rather some sort of odd panic that really had no foundation in reality. He told me
that he expected the market to continue upward. He is trading using statistical analysis and common methods.
I have found what I believe to be very revealing information on the
Business Insider website. Keep in mind that this website is talking
to people in this industry, and the general public is not really going to understand what is going on. The article I linked contains enough
information in it to allow me to relax and accept the move for what it is. The move today was a heroic move. We saw a powerful manipulation of market
prices in order to help a friend in need. This is it. We are here in the time period of the hero.
First, notice that the ''news'' is actually rumor.
Then notice the tricky language used... ''Rumors that a hedge fund is in trouble'' and ''chatter about a large "institutional player" exiting
positions in nearly 200 different stocks''.
Do you understand? Can you make sense of these two hints? Here is how I interpret this information, which is rumor, not news for the general public...
Hedge funds are seeking to make profit from down moves. A hedge fund would enjoy today's down move. Ask yourself why would the market move down on
rumor of a hedge fund in trouble? What could trouble a hedge fund? A sudden realization that the market is going to move rapidly higher could trouble
a hedge fund. A down move could allow a hedge fund to cover and exit their position. In other words, some hedge fund found itself on the wrong side of
the market and needed a large down day to correct their position. They needed help.
Who can move the market? Literally, who has the financial power to bludgeon the market and momentarily push it down?
I will tell you now that ''large'' players are not in the habit of making sudden movements that disturb the market. They do not make waves. A
large ''institutional player'' will slowly build a position or unload a position over the course of days or weeks so they don't leave a footprint
for you to notice. You may notice churning in a sideways channel, but you are not going to easily know who is buying or selling. Market participants
are not in the market to destroy each other. They are there cooperating with each other to a certain extent. When you see a huge movement of obvious
selling you are seeing something deliberate. What bothered market observers today was the absence of any real negative news that would precipitate
this big sell-off today. It felt odd. It seemed out of place.
I am telling you that what we saw today was an heroic action in the market. Somebody, we will probably never know, stepped in and beat the market down
today so that their friend could cover their short position and either stand aside as the market thrusts upwards. I fully believe that we are going to
see a swift market advance to a much higher level. The hedge fund does not know the cycle, but they are a valued friend of somebody who knows the
cycle and has the power to literally move the market in the direction necessary. It is commonly understood that heavy pressure can manipulate the
market temporarily. It is not a secret. It is just fact. This is why large traders to not jump in or out of large positions all at once. They move
slowly so as not to disturb the market. In doing so, they achieve favorable prices for themselves without inflicting damage on others. You have to
understand that the money supply is near infinite. These guys are not trying to hurt each other. That would make a nice market. They are very
conscious of what they are doing. Some have more information than others, and it is very obvious to me that some big size hero stepped up to assist an
ally today. I do not know how long this downturn will last, but I assume that the hedge fund without cycle knowledge was not so large. They could have
very well corrected their position today. The market could very easily launch upwards tomorrow.