Hi Slagle,
<<My opinion is that when the big guys really want too they can step in and make a stock go any way they want.>>
Yes and no. Yes, the big guys move markets, no question. But no, they cannot move them at will, because there are opposing big guys in most cases that partially or maybe completely oppose them. Or may overwhelm them even, and push the market the other way and force them underwater. The markets surge in one direction or another depending upon the relative magnitude of these opposing forces. Sometimes they line up on the same team so you get very strong movements. Most times, they are distributed somewhat.
Either way, TA in my view represents the summed total (net) of their activities. So I don't see this as making TA less accurate. That said, sometimes the cues are not in the momentum indicators at all, but are elsewhere (market internals, sentiment indicators, volume patterns, etc.). A good example of this was the recent reversal in QQQQ and the $COMPX, which was mostly reflected in volume patterns and support levels, but much less so in the momentum indicators (although the weekly chart was a strong tip-off).
<<This may not happen often, but when it does the little guy better get out of the way. >>
Better yet, draft on their movements. Then it comes down to the $64,000 question, which I think is the central issue of this thread: where, on balance, are the big guys going with their megabucks? Long, short, or sidelines? Rotating elsewhere?
When elephants move, mice get trampled!
<ggg>
T |
