Which Way Dow? Market Direction

[trader_dante]

Yes what you say is logical to you and what your brain is allowing you to see but what would happen if buying dried up. Selling would dry up. Here is a good question. Why does the stock market move 100 points on big volumes of buying and selling, yet on another day very little volume of buying and selling moves the stock market 100 points. The answer is that buying and selling does not move a price graph. It’s all an elution. Is price movement really connected to buying and selling of an asset?

The answer to your question is in my last post. It's not the VOLUME its the PRICE transacted at that moves shares.

Read it again, perhaps?

 

[TheBramble]

If the creation of the universe is controlled by Fibonacci rules of a ratio of 1.618

It isn't. So you can relax.

 

[TheBramble]

The answer to your question is in my last post. It's not the VOLUME its the PRICE transacted at that moves shares.

It's also the case sometimes Volume causes shares to be transacted at a price level the buyer/seller would not have transacted had the Volume been higher/lower.

 

[TheBramble]

but what would happen if buying dried up. Selling would dry up.

No, not quite that simplistic. When buying dries up at any given level it means for that moment in time there are no buyers at that level. Depending on forward valuation of the instrument in question, either sellers move their price down to attract buyers, or buyers increase their bid to acquire more of the instrument. Nothing really ‘dries up’, you just get stasis points.

Here is a good question. Why does the stock market move 100 points on big volumes of buying and selling,

because there is significant difference of opinion on future value and the strong hands are selling/buying into weak hands.

yet on another day very little volume of buying and selling moves the stock market 100 points.

Market manipulation to increase order flow and suck in the unwary.

The answer is that buying and selling does not move a price graph. It’s all an elution. Is price movement really connected to buying and selling of an asset? [/B]

Partly.

 

[Holy Grail]

I predicted a few days ago that my Holy Grail system is predicting a total collapse in the financial markets around the world. Financial meltdown, financial Armageddon.

Watch the news. The Bank of England has just put up 50 billion pounds to help struggling British banks. The banking system is in crises. You can’t just keep borrowing money. Credit has a limit and we have reached that limit. The internet said that the banks are refusing to lend to each other. Banks have made it more difficult for the public to borrow money which will push house prices down because no one will be able to buy houses.

If people fall into negative equity then that will affect consumer spending. Consumer spending will cause lose of jobs. This is a terrible spiral downwards in all financial markets. This is a pack of cards that will collapse. Also the banks are hiding huge losses. The truth will come out.

 

[chump]

Because if I enter the market using perfect Fibonacci rules and enter the market with real money when the ratio has already been broken in the stock market. I don’t know what the consequences will be. Everything in the universe is all connected by the Fibonacci ratio 1.618 including your body and mind. Look at how the moon moves. It affects the tides and oceans of the world. If the moon wasn’t there tides would stop moving, it would probably cause the weather to change and end of life on earth. This is mind blowing stuff.

Nobody will stop a global financial meltdown. The fed in America is pumping billions into the financial system to try and stop this credit crunch and banks collapsing. Big mistake because it causes resistance volume and drives the stock market down lower. As the stock market falls further the fed will do the same until there is no more money in the system.

"Everything in the universe is all connected by the Fibonacci ratio 1.618 including your body and mind"...this is demonstrably true ergo....your IQ is 1.618 x your height in metres
and the only "viscous" ..(LOL try vicious next time) thing on show here is that fluid mass between your ears nonetheless you're entertaining so don't go away.

 

[firewalker99]

I predicted a few days ago that my Holy Grail system is predicting a total collapse in the financial markets around the world. Financial meltdown, financial Armageddon.

Seems to me like your 'Holy Grail system' is based on two rules:

(a) find some negative news about the financial sector on the internet (now thàt must be difficult these days *cough*)
(b) copy that news on a trading forum and declare how amazing your Holy Grail system predicted all of this

The banking system is in crises.

No, really? Is that so? :help:

You can’t just keep borrowing money. Credit has a limit and we have reached that limit. The internet said that the banks are refusing to lend to each other. Banks have made it more difficult for the public to borrow money which will push house prices down because no one will be able to buy houses.

I think 'the internet said' that the world would end in 2012 too. Oh, and 2000. I wonder which will come first financial Armageddon or total world collapse.

If people fall into negative equity then that will affect consumer spending. Consumer spending will cause lose of jobs. This is a terrible spiral downwards in all financial markets. This is a pack of cards that will collapse. Also the banks are hiding huge losses. The truth will come out.

been there done that... nothing new here... ever heard about economic cycles and waves?

Bye for now, I'm going to get myself drunk now that I can still buy some beer :drunk:

 

[Hoggums]

I predicted a few days ago that my Holy Grail system is predicting a total collapse in the financial markets around the world. Financial meltdown, financial Armageddon.

Watch the news. The Bank of England has just put up 50 billion pounds to help struggling British banks. The banking system is in crises. You can’t just keep borrowing money. Credit has a limit and we have reached that limit. The internet said that the banks are refusing to lend to each other. Banks have made it more difficult for the public to borrow money which will push house prices down because no one will be able to buy houses.

If people fall into negative equity then that will affect consumer spending. Consumer spending will cause lose of jobs. This is a terrible spiral downwards in all financial markets. This is a pack of cards that will collapse. Also the banks are hiding huge losses. The truth will come out.

OK - I'm shorting EVERYTHING at the max per point I can. I CAN'T LOSE!!! wooohoooooo!

Interestingly - if everything goes to zero, including euro and us dollar then what will the EUR/USD rate be?

 

[jonnyy40]

Well I think he's right apart from the Dow going to between say 13700 to 13800 beforehand.

 

[Holy Grail]

The bank of America has just reported a slump in profits of 77%. This is going to get serious. On the internet it is saying this could be worse than the 1930’s crash and depression.

 

[Hoggums]

The bank of America has just reported a slump in profits of 77%. This is going to get serious. On the internet it is saying this could be worse than the 1930’s crash and depression.

I thought Fibonacci would have predicted a fall in profits of 61.8%

It's still a profit - not a loss.

But if the internet is saying we're going for a major depression then it must be true.

 

[chump]

If the Dow mirrored the behaviour of the Ftse then what happened last week on my sector charts was a clear sentiment move...out of defensive sectors...back into 'risk' and that means of course we have well and truly cleared the oversold move from earlier in the year that was based on 'fear' of loss ,now we have the 'fear' of missing out again.

 

[firewalker99]

But if the internet is saying we're going for a major depression then it must be true.

so the Holy Grail must be the internet! :clap:

 

[Holy Grail]

Yes it is on the internet. Two separate packages that cost about 25 pound each a month. I use 6 forms of Fibonacci to produce a prediction on the Dow. It is showing death to the financial system.

 

[Holy Grail]

Fibonacci is a totally logical system. It is based on support and resistance levels which every trader knows about.

Many traders call Fibonacci trading as voodoo or witchcraft trading. Why I have no idea. All technical indicators use support and resistance levels of some kind.

 

[firewalker99]

Yes it is on the internet. Two separate packages that cost about 25 pound each a month. I use 6 forms of Fibonacci to produce a prediction on the Dow. It is showing death to the financial system.

Thanks, that confirms what I was thinking. Trying to sell something here, are we...

Btw, if I understand correctly - and money will be worth nothing anymore - it's available for free then?

 

[Holy Grail]

Thanks, that confirms what I was thinking. Trying to sell something here, are we...

Btw, if I understand correctly - and money will be worth nothing anymore - it's available for free then?

No not trying to sell anything. I would advise you to take money out of the bank and keep it safe at home.

 

[dcraig1]

All technical indicators use support and resistance levels.

That is not even a little bit true. ATR or any measure of volatility for instance.

 

[Holy Grail]

That is not even a little bit true. ATR or any measure of volatility for instance.

ATR is average true range. It measures high and low. Which is support and resistance levels.

Average True Range (ATR) - StockCharts.com

 

[dcraig1]

ATR is average true range. It measures high and low. Which is support and resistance levels.

Average True Range (ATR) - StockCharts.com

Well if you reckon you can establish support and resistance levels from ATR, then by all means go right ahead. Don't let me stand in your way.