Remember these words, "Bull Trap"

From yesterday,


"Maybe setting up a nice bull trap?"

 You hear me throw around the words, "Head Fake", "False Breakout" and occasionally "Bull or Bear Trap". There are so prevalent that sometimes we don't see them or understand the importance of what we are seeing. With the 3C charts so negative, t gives subtle price action new meaning. With this triangle in place, what would need to happen to get bulls to buy, to inspire confidence? A break above the triangle. While it may seem like random price movement, with 3C being negative through the entire event, it was clearly a set up, a head fake or a bull trap.

Everyone who went long the last two days the market is now at a loss=Bull trap. There's a reason for this, first the buying demand allows Wall Street to short in to strength and more importantly, in to demand. Remember how quickly long charts like the 10-15 min charts went leading negative-IN ONE DAY! That indicates the buying was being used by Wall Street to distribute and get short. The second reason, if you want the market to fall to make your short position worth more, there's nothing like adding supply to the market and those who are at a loss, will start selling and add supply, pushing prices down even more. This is the way of Wall Street.