Text From Video:
This is a follow up to my video on Support and Resistance price cycles.
When I made the first price cycles vid, I knew it would be controversial and some wouldn’t believe or would misunderstand the point I was trying to make.
The point of my vid was not to try and say amatures can’t see support or resistance lines or that they cannot see ranges.
The point of my video was to try and show that big money places their positions and uses their resources and influence to steer the public the wrong direction.
Trading is a zero sum game. For someone to win, someone else has to lose. If you make money, someone else lost it.
As small traders wash out and quit trading, big money must continually attract new traders, and continually steer them the wrong way.
Support and resistance comes in many forms.
The graph I posted was an over simplification to try and make a point.
I will now try and give 3 examples that many may have followed in the media without realizing the manipulation involved.
My personal favorite-
Right after Washington Mut and Wachovia got nationalized, there was a big fear that all the banks would get nationalized.
At the time, BAC was in the $20s. Bloomberg brought in one analyst/economist/expert after another who said things like-
“well, if there is one bank that will pull through all of this, it’s BAC. Really, they will come out of this ahead, because they will pick up the customers from the other banks that go out of business. Right now, the price is really cheap, because BAC only dropped when the other banks failed. Anyone getting in now will pick up the stock cheap. I think it will be over $60 next year. I mean, this isn’t bank of next door, this is BAC, one of the biggest banks in the world. They aren’t going anywhere! I would say, in a long term portfolio, one would want to hold a company like BAC….. blah blah blah” on and on, expert after expert saying the same thing. Price rose during this time before promptly dropping down to $3.
9-25
I could give so many more examples, but it would probably be pointless. Some will never believe this anyway.
So I will simply suggest to those watching this that they be aware that, when markets move, often they are being pushed.
Music:
Danse Macabre – Low Strings Finale (Theme)
Dreamy Flashback
Kevin MacLeod
incompetech.com
