For those who have illusions about the 'market', TA and FA.
All simpler and cruder than you think!
'Why are market makers, dealers and brokers in the large black and take the money from the market?
If there is a movement, they know the source of this movement, namely:
1. The structure of the purchases or sales by Long and shorts. For example, what percentage of the total purchases for the day was to cover the shorts? It is very important infa. What is this? Shortskviz or visit the big players?
2. Who exactly is buying or selling? Small, medium, or large speculators, private long-term investors, hedge funds, the state, dealers and so forth. A simple example. IBM shares rose almost a year and did not fall despite the fact that it is on the financial performance is not that so good. And just recently we learned that the whole year bought IBM stock on the record volume of Buffett. Of course, the dealers knew this information already in the beginning of the purchases. If the increase in purchases of speculators is provided, it is not growth, but fake, and a reversal may occur at any moment. Therefore, this structure is also a very valuable infa.
3. Placing large orders to buy or sell. It seems everything can be good, no news and the stock drops a few days or weeks just because of that large funds needed to merge its stake. For bidders, this information is hidden, but insiders in the course of a large order, and will act in the direction of this order. For example, in 2008, knowing that EBV will enter the Russian market, then someone could provide themselves with loot for life, rising from his shoulder and caught a limit movement of the shares by 30%. Or, MMC, all of which fell in November 2011 only because of the release of a large fund.
4. Access to insider information from central banks and governments. Of course, that all, without exception, the dealers were aware of the opening of the swap lines in the middle of November and so bought back in the fall of the market. And knew by the decision of European officials to increase stab.fonda, which was in late October. Inside are always taxis and they are actively used.
5. Dealers are always aware of the volume and access to liquidity in the system. This is understandable, since they monitor this liquidity. This is the same as to know what your right hand. You know? The same thing, and dealers. That is, they are aware of no problems when these problems occur, and in advance. It is for this reason they came out from Long first 6 months of 2011. Once out, the market collapsed in August. They always have the concept of potential holes, holes in the system, problems in funding and so on.
6. They can be real-time tracking of the money market and cash flows. Knowing the flow of liquidity, it is possible to know the direction of the market.
7. They know exactly the location of all stops. Having access to this information, it is possible to predict the potential for price momentum. For example, if there is a canopy of shorts, and the margin of the foot which are near 1230, then with a probability of 90% will go to the market in 1230 to collect money from speculators. Same thing with Long. Market drops as long as the foot does not lift the larger parties. This is the reason that markets are always deployed after the burst of sentiment. After the fall shortskviza and grow after the collapse.
8. They know the level of liquidity in the system, the volume of deposits and assets in brokerage accounts. So, have an idea of how much to send money to change the S & P by 1%. In fact, dealers can monitor the S & P to within one tick. They have a software system using neural networks, which is based on historical data, experience and current level of liquidity determines the potential of the market movement in either direction.
With access to at least one item of the whole, analysis, news reports, you can send in the trash, because Price formed a totally different way.
Here's an example. Yesterday 6 Savings torn out, and now after the margin Dwarf in the evening fell, yesterday, trailed behind Gazprom, Gazprom is now 5%. Without knowing the amount of shorts and warrants to purchase, it is impossible to predict the movement of any one TA, fund.korp.analizom and more. Liquidity stupidly wanders, taking money from gullible speculators. Likewise, those who believed in free markets, lost on Friday, putting a drop. So there you have it. '