The S&P market opens today off the support level from last week. It is quite interesting how the market moves. It is like an orchestra with no main conductor. The music gets to flow freely without limitations. No limitations is mainly due to the amount of money that it takes to control the market.
Flavor of the Market
That is why in the days of pit trading there were primarily two big groups that dominated. We called them paper and commercial. If they traded together they had a chance at moving the market, and that is what they did.
Nowadays, most traders are screen traders. The groups are still the same, but just the names and places have changed a bit. but why do into this?
Today’s Market Analysis
The precise reason of why I want to discuss the groups of traders is to discuss market manipulation. Usually when you hear people cry manipulation is either those who are losing money or a politician who is having a bad day. Markets predominately have very good movement, and that is how we are able to trade them.
Price is clearly on a support zone from last week. It was fun to watch that zone hold last week, and give us a nice move higher. It will be very interesting to see what happens on this support. I am keeping a close eye on the lower zone. However, there is a chance that current support holds. We need to be aware of both scenarios even if one has a higher chance of happening.
How Do You Trade?
A good trader always keeps an open mind about the markets. I am looking for the markets to go lower. However, I am keeping the idea of a possible bounce open until it is not. That is what good traders do in my opinion. I have never claimed to be the best trader out there and nor will I. I am good and what I do, and can teach others how to also be a good trader.
How is your approach to trading? Do you like to have a clear bias or do you just trade what you see?