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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (53319)	6/9/2000 8:22:00 PM
From: HairBall	Respond to of 99985

UnBelievable: In response to your earlier post to me... In your opinion, has the degree of market manipulation increased over the last few years? Do you take the "possibility" of such manipulation into account when you draw or interpret your charts? I think market manipulation has become more blatant as of late and has taken on additional forms as well. IE: More folks in on the act...<g> However, I also think that because more individual investors/traders have access to real time quotes and charts, etc...we are more apt to detect and note the shenanigans...<g> Of course, with more folks eyeing the charts during the day this sets us up for additional forms of manipulation. IE: Level two false bids/ask...technical chart head fakes, etc. I do try to take in to consideration manipulation with each investment/trade and or market call. Trying to explain how I do that would require much more than a few paragraphs on SI. It seems that a large part of the price movement recently derives from Gaps and the first and last 30-45 minutes of the day. During the day MM's seem to resist adverse price movement by widening the spread (Particularly on issues trading under 2 Mil SS per day). Would you comment on my conclusions and indicate what, if any, are the implications in the short and long term? The markets seem to fall into various trading trends. I remember that back during the 98 correction the market would have wild intraday swings. All of the various forms of irregular trading can be attributed to a variety of activities and or underlying root causes ranging from day traders covering positions (long or short), MMs/Specialist price positioning the stock to generate investor response to large investment houses pushing stock up or down, not to mention bogus recommendations. Frankly I don't know what the implications are. Market manipulation is not a new thing... What happens next? That is a pretty tall question, next minute, next hour, next day, next week, next month, next year? I tend to just try and follow the price/volume action via technical analysis with some fundamentals and news thrown in. The glimpses the TA gives me varies from intraday to short-term and sometimes longer-term. And, since the markets are dynamic those glimpses and or expections are dynamic as well. That is why I try to only trade (bet on) the higher percentage reads. I am only watching the markets with one eye at this time, so I shall refrain from prognosticating until I am back fully investing and or trading. I always feel more honest giving my take when I have money on the line. I did keep three monitors...<g> Back to lurking! Regards, LG