It's really hard to say on a day to day bases what the Smart Money is doing. When I do a possible scenario of the last several months. That's all conjecture on my part. All I see in the moment is where the price is most likely headed at that time based on the chart. The chart really has no idea who is buying or selling. In general, when you see huge volume spikes, that is either a panic situation or a lot of very savvy traders that know something is up and they are positioning themselves. When it comes at the bottom of a long run down, it's most likely short covering. When it's at the top of a steep rally, it's most likely profit taking and new short selling. Accumulation and distribution does not generally happen in huge volume spikes except for panic selling at sharp drops in price and panic buying at steep initial rallies. In the aftermath, I can look back and suppose what might have happened where. But, just like a really good mystery movie, while it is unfolding, all you see are clues along the way that seem unrelated and often insignificant until its all over and you see how they all fit together for the conclusion. The one advantage that Smart Money has is they know so much that they can remain calm and deliberate in there trading. It's all planned out ahead of time and they are in control because their fundamental analysis is very often spot on. You and I do not have the resources or the connections or a view of the total complete fundamental picture like they do. Once I realized how true what was, I became sold on technical analysis because that was an excellent way to positioning myself on the right side of the market without having to know anything about the fundamentals which could never seem to get a complete picture of to begin with. For instance, did you have any idea of how many other companies already had a very similar product on the market for the very same purpose? Smart Money knew. Did you have any idea how all those other companies were doing in the earnings department and what the total market consisted of what companies already had what share of the market? I sure Smart Money did. When the price of the stock was at $2.00/share and even higher, were you aware that the true value of the BPAX was actually a lot lower than that even taking the FDA approval into consideration? But, I and many many others who collectively make up the technical trading community continued to have a grasp on the general direction the price was headed in even though we had no idea why. Believe me! Learning and practicing technical analysis will make a huge difference in your bottom line. IF you're like me, once you realize how accurate technical analysis can be, and see the mistakes you often make when you doubt the charts and believe what you assume the fundamentals are telling you instead only to lose money on that trade, you'll throw the fundamentals and the news out the window too and stay focused on the charts as well.
AI
