Posted:
#51
Trading the stock market is a test of your will against the manipulation of the insiders. For example we all know that the economy is in a recession and the end is no where in sight. The insiders however, can produce bogus reports that say we are not in a recession and that the end may be near.
During this process those reports are used as justification to move prices higher for stocks that you know are in trouble. The power of the insiders then is to deny reality by moving prices higher and therefore frustrating any reality based trader.
You will notice that when the insiders are unable to deny this reality anymore there will be a period where prices and reality line up and make sense. At this point the FED comes to the rescue and just as you think your world makes sense after all the prices magically reverse and you have another 12 weeks to think about what you believe.
This is the process...as traders we sometimes have to do things that we don't believe because we know that they are offing the reality again. I believe we are in that period now. Its no mans land.
The best way to deal with it is to wait until something that you want to short has rallied for 12 weeks and is nearing or above its 50 week moving average. If they are touting it at that time it means they want to get out and sell it to the public.
The good news is that in the end price and news line up and what you thought was going to happen ...happens.
That is the game in a nutshell
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