More light volume games bidwhack closes below 50 DMA
The bears used this light volume day to get their first print below the 50 DMA since June. As mentioned earlier today, they would wait until the end of the day to attack. What they did was wait until the very last minute of trading and then drop 400,000 air shares into bid in order to force a lower print into the close just below the 50 DMA.
Their intention is to trick people into believing that this is a break in trend because there is a close below the 50 DMA. The problem is that the only people who pay attention to trend changes are technical traders, and any technical trader worth anything knows that you need a series of lower closes below the low of the piercing candle to give you confirmation of a trend change.
If any day closes back above the trendline before that happens, the process starts again. These nuances matter a lot and I use them in my day trading/swing trading on a daily basis to keep me in trades when the markets are trying to trick me into letting go early.
MM's are simply resorting to games in light volume to try paint the chart down because this week has been their first opportunity since early July to move to break even on the shorts accumulated in the mid 4's. They are definitely bleeding cash from margin costs and at the very least want to stop from being called out of their position at the end of the week.
By the way, notice the close, 4.5 cents, the number I keep emphasizing as the main area where short positions were accumulated by the bears April-June.
[IMG]http://i.imgur.com/pQ58T.png[/IMG]
[IMG]http://i.imgur.com/n0btV.png[/IMG]
