The market was topping out last week. The drop has nothing to do with Covid or anything else.
Supply and demand rule the market. Demand was drying up at the highs. Supply was strong. (Not enough willing buyers to overcome willing sellers)
Strong demand was far down.
The market will ALWAYS seek volume. You cannot buy and sell in volume if there is a lack of one side or the other.
The market will move to an area where buyers and sellers agree. In this case the market will keep moving down until buyers overcome the panic sellers.
Keep it simple, don't buy the market BS put out by the media.
Think this through. When the market drops big the little guy panics and sells. Who do they sell to? They cannot possibility sell with no buyers to take the other side of their trade.
The price will drop until the big guys start buying in bulk. That usually happens in areas where the little guys have been trained to give up and get out in bulk.
This nonsense the MSM is putting out about reasons the market drops is designed to make us think the market is random.
As long as we assume the market is random we will never even consider anything other way.
The big players got to be big players because they know how the markets work. They understand capitalism. It's all about X amount of willing buyers at different price levels vs X amount of willing sellers at certain price levels.
That was exactly what happened with GME. A lack of sellers forced price up until enough selling volume came in to sell to the people that were forced to buy.
It is still all about supply and demand.
There is volume at every price level that had a trade.
It is the amount of available volume. Not the volume that traded but the volume at various price points of willing buyers and/or sellers.
Willing sellers at price points above current price.
Willing buyers at price points below current price.
There are always going to be new buyers and sellers entering the market at all times.
The big players will be in at certain price points. They will not move their price points. They wait for price to get to them. That is how they got to be bigger players.
If there are willing sellers willing to sell 1 million shares in total at various price points up to $3.00 above current price. Combined with willing buyers willing to buy 500k shares at various price points up to $3 above current price the price will be capped at $3 above current price. Price will stay capped until those sellers are filled. Price could drop $20-30 a share but when it comes back it will be capped until those sellers are filled.
I got out this past Thursday. Will be looking to get back in soon. I do not short the market even if I think it is going down.
Most people do not realize it but if you consider the market as just about supply and demand than a market "crash" happens both up and down. Most think the market only crashes down.
Over time the market "crashes" to the upside FAR more than it "crashes" to the downside.
Actually the problem is most people BUY at the wrong time. Then when price drops to natural demand they are "losing" and panic. Most panic and sell when price drops below a MA or when price drops below a pivot point.
They never question who is on the other side of their trade.
The market was topping out last week. The drop has nothing to do with Covid or anything else. Supply and demand rule the market. Demand was drying up at the highs. Supply was strong. (Not enough willing buyers to overcome willing sellers) Strong demand was far down. The market will ALWAYS seek volume. You cannot buy and sell in volume if there is a lack of one side or the other. The market will move to an area where buyers and sellers agree. In this case the market will keep moving down until buyers overcome the panic sellers. Keep it simple, don't buy the market BS put out by the media.
Think this through. When the market drops big the little guy panics and sells. Who do they sell to? They cannot possibility sell with no buyers to take the other side of their trade.
The price will drop until the big guys start buying in bulk. That usually happens in areas where the little guys have been trained to give up and get out in bulk. This nonsense the MSM is putting out about reasons the market drops is designed to make us think the market is random. As long as we assume the market is random we will never even consider anything other way. The big players got to be big players because they know how the markets work. They understand capitalism. It's all about X amount of willing buyers at different price levels vs X amount of willing sellers at certain price levels.
Except for GME, the lack of volume is one of the big redpills it's providing.
That was exactly what happened with GME. A lack of sellers forced price up until enough selling volume came in to sell to the people that were forced to buy. It is still all about supply and demand.
Talking about the sideways trading and short ladder attacks still going on despite lack of volume.
There is volume at every price level that had a trade. It is the amount of available volume. Not the volume that traded but the volume at various price points of willing buyers and/or sellers. Willing sellers at price points above current price. Willing buyers at price points below current price. There are always going to be new buyers and sellers entering the market at all times. The big players will be in at certain price points. They will not move their price points. They wait for price to get to them. That is how they got to be bigger players. If there are willing sellers willing to sell 1 million shares in total at various price points up to $3.00 above current price. Combined with willing buyers willing to buy 500k shares at various price points up to $3 above current price the price will be capped at $3 above current price. Price will stay capped until those sellers are filled. Price could drop $20-30 a share but when it comes back it will be capped until those sellers are filled.
I'm aware I have quite a bit invested. It's a spin By mainstream media to scare people
I got out this past Thursday. Will be looking to get back in soon. I do not short the market even if I think it is going down. Most people do not realize it but if you consider the market as just about supply and demand than a market "crash" happens both up and down. Most think the market only crashes down. Over time the market "crashes" to the upside FAR more than it "crashes" to the downside.
The whole thing is pushed by media fear
Actually the problem is most people BUY at the wrong time. Then when price drops to natural demand they are "losing" and panic. Most panic and sell when price drops below a MA or when price drops below a pivot point. They never question who is on the other side of their trade.