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Strategies & Market Trends : Rande Is . . . HOME

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To: moufassa7 who wrote (34960)	9/14/2000 4:32:56 PM
From: Rande Is	Read Replies (5) of 57584

. . . . . Chicken or Egg? . . . . Keeping with our subjective view of the markets, I'd like to explore a hypothetical scenario which likely occurs every day in offices high above Wall Street. . . If you were the head of the Morgan-Barney Brothers and your latest marketing report showed that you had scores of your best customers wishing to get into the Nasdaq 100 stocks . . .say $500 million worth of orders to work into NDX stocks. . . .you want to do them right. [OK, you want to milk them for all you can get] So you check the order book and notice $300 million worth of Naz 100 stocks currently represented with "stop loss" orders. . . mostly triggered by the obvious TA signal on the Nas COMPX at 3900. . . [much of which was placed overnight after a perfectly timed "market analysis warning" is aired by CNBC just before closing.] So you know that if you can "persuade" the tech market lower to that critical COMPX mark, you could TRIGGER those stop losses. . .grab up a ton of shares of these big stocks "on the cheap" via your Market Makers. . .force a sharp bounce higher [for maximum gains on your behalf & maybe even a bear trap for those betting we drop lower]. . . then get your sales staff to push them to your biggest buyers ASAP citing "technical strength in the market". . .would you not do your best to see it goes down in just that manner? And if the market DOES drop as a result of your efforts and those of other big houses in a similar situation as yours. . . !! Then which comes first? The chicken or the egg? Does the Technical Analysis track the market move after the fact? Or does the anticipation of a TA critical junction ahead actually CAUSE the move? And to what extent are the TOOLS we rely on everyday actually used AGAINST us on a daily basis?? THAT is what interests me most these days! Rande Is

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