It takes a while to learn 3C because you are seeing the underbelly of the beast, not the fair garden of stocks, where everyone is equal because the SEC makes sure it is so.
I ALWAYS started everyone of my Technical Analysis classes with that video I post from time to time of Cramer actually being himself, actually being useful and telling the truth and that's why the video is no longer hosted on the Street.com and why it has been scrubbed from every site they can and what use to be a very easy video to find with 1 search, is now a lot more difficult.
When I talk about accumulation or distribution and especially head fakes, running stops, running limit orders, etc, I often talk about it in the context of providing demand for Wall Street to sell in to at higher prices or supply for Wall St. to buy in to at lower prices and tons of supply, like when an area of tons of stops is hit, that's cheap prices and east supply for Wall Street to accumulate, but no one ever thinks of, "Who is taking the other side of that ugly trade?"
Finally I often tell you to never trust the "Free" research companies like Goldman hand out, do you really believe they'll spend millions of dollars in research and give you their conclusions for free? I also have made mention of how Goldman Sachs trades against their own clients, why would they treat you any better?
Here's a story that ties it all together, real world, real facts, don't take my word for it.
An investment bank issues a rare SELL rating on HNZ. The investment bank? The Squid, Goldman Sachs. The Sell rating is issued to a select few known as Goldman Sachs Clients.
What are Goldman's traders doing in the meantime (and that's a perfect word, "meantime") ?
BUYING HNZ!
Here's the story, this is one firm caught red-handed, this goes on every day at every firm, Goldman just happens to have very long tentacles that reach in to every position of power.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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