I am reading this a lot at the moment (yeah where else...the internet) and had a link sent to me re: low volume/high priced stock buying etc as a central bank manipulation tool.
There is no conspiracy here; simply (and if you lazy traders studied accumulation and distribution in volume/liquidity) institutional/s (smart money) sell stock 'dumb money' buys stock at high prices, thus pushes a stock price up/or index on low volume. So if there are double sellers to every buyer, that is the obvious bid/offer sign. It's called 'marked up' distribution.
It has happened very quickly in the last week of so, please refer to: US earnings - rallies markets into widening volatility post
Yes, Wall Street firms/banks/even central banks will encourage 'dumb' money to buy, the flip side is the Goldman Sachs of the world will then short/sell the stock at any given time. That is the raw reality of the markets. Not a conspiracy, it's just to make cash (Wall Street). Central banks try to build confidence and have unintended consequences that effect the market i.e retail trader and some mutual fund (dumb money) reads: 'everything ok!' headline the by ECB (especially the ECB) or the Fed.
It is not the 'plunge protection team' that doesn't exist, nor the central banks buying stocks to support markets with some shadowy desire to undermine other markets or something. If you believe that: paranoid delusions.
No comments:
Post a Comment