Just Part of the Game

If you used technical analysis in the past and felt like you could never win, here's a good example of why.

A new breakout intraday high in DIA, look at the green volume, the longs eagerly took the bait, then PLOP, instant bull trap, no need to add water. Look at the volume after. Even if DIA closed at new monthly highs today, a bunch of longs, especially the most likely ones to take that trade, day traders working on 4-10x leverage just had their day ruined. One trade like that for a day trader, "Could" end their career. So please look at these charts and learn. What just happened there was a breakout above an obvious resistance level, one the BULLS WANT to buy. Most retail are optimistic, full of "HOPE" and that was without a doubt a malicious act by the market maker. The market maker-in this case the specialist as it's NYSE listed, saw the orders piled up in their book right above resistance. For a specialist, Volume x Spread =profits. Those guys bought up there, the specialist in filling the order is probably already naked short so it just helps his position as he collects more shares.

This is the market:  ugly, not fair, a rigged game. forget about CNBC and their recommendations, this is how it goes down in thousands of stocks every day and in more meaningful and hurtful ways then just a 1 minute chart like you see overhead. If you are a technician, you have to nearly unlearn everything you know, or at least use that knowledge to think like a crook (specialist/market maker). The way you have learned to trade through thousands of books, seminars, CDs and DVDs, market letters, all of it, just reinforces your status as a victim-a sheep.

It's a small example, but be assured, it ruined some people's entire week.