Hi Weagle,
A few 0's or 1's will extend the run. But as the positives get a higher average, then you watch for what would be an extreme number (either positive or negative), which must then reverse. Watching it a long time, you see that extremes develop for the 3 , 10 and 30 moving averages.
The swings from positive to negative are required, as are the reverse as well.
The stories get scripted with positives or negatives and they drive cycles of positive and negative.
The market makers accumulate shares when negative stories get scripted. At a level, accumulation has been achieved and the discount no longer drives selling, more dip buyers become competing for the cheap shares, and the accumulating market makers quit doing their manipulation for free for the outsiders. They know when the selling dries up, and they sense when competing dip buyers are competing for the discount. The manipulators must sense that, as they have shares they shorted to make the market heavy that must be covered.
The difference between clx and clx pp(clx - clxpp) is AYDIS a three day moving average only. Positive aydis is overbought, negative aydis is over sold.
Learn those swings and peaks and you learn how to form a likely Elliott wave count. The most powerful wave is the three of one three and five and often is when the 10 day and the 30day are aligned to both be negative and with big negative offsets such that it builds a big positive wave.
Option expiration is always the third Friday of the month. The balance of calls sold and puts sold are products of the plus swings and the negative swings. That forms the basis of a monthly pay check for all of wallstreet.
WWW the Wednesday before that third Friday is when balancing the books is attempted to be finished. Most often, the market climbs up after that and the discounted stocks accumulated, get marked up into expiration and a paycheck is made. Maybe 2-3 of them are down into expiration in a year and they are often the A and C waves of a corrective wave. Throw in full moons and new moons, a fib number of a retrace or an extension and begin to gloom the wave count.
All of those give us hints at what is brewing amongst the powers of market makers. As you've learned from Ted, market makers need not be insiders or Wall Streeters. IT is the biggest money behind the moves of a stock, and how well he reads the swings. Buys at bottoms, sells out at rises and shorts at tops.
There are only so many shares outstanding, institutions own and sew up most of them . That leaves just a much smaller subset of float. The smaller the float, the easier it is to manipulate.
All those factors do make the market of many stocks.
To read the waves, and hold the buys, till the best bottoms, and to sell into the ups, allows one to build a core. A core one trades around. Ted at many times owned more shares than those on the board. He did that to control the price of the stock. Ted knew a top, because he created it by selling his huge positions.
Teds book is a history of his wins and others as well.
A story of manipulation. Wall street has agreements that are unwritten, mostly on the huge big capitalizations.
Ted's wealth was small and he chose out of favor small cheap stocks , and I believe he manipulated them. His book is his story of successes, and failures when he stepped on other's positions. Those stories of how he was buying stock up and it got hit in the head - sounds like a story of his failures as well.
In Ted's life, he accumulated enough money and experiences to be an an insider himself. I believe.
Ted came from humble beginnings. little to no education. He had not a bragging bone in his body. Yet he wrote a book of his manipulation, wins and troubles.
His preface says it all. Providing hope, that if you learn safe investments, you'll ride on the tails of others, who have more money than you. You can , if successful "enjoy the finer benefits of a capitalist system".
If you learn safe investments, and are patient, always making money and never losing on speculation, you can in a disciplined life, time be the manipulator.
Diversify, become comfortable on how a stock works. Buy more on a breakout with confidence, that's some one like you doing significant buying as well, ride along.
Bob |
