Simple's Green Room

[simplegreen]

Heavyweight you must understand that in a case where the majority is short then the banks have no choice but be long since they are long by the fact that you sold and it was the bank or broker you sold to...every buyer has a seller and every seller has a buyer.In a way its a check and balance were it not for the fact that no matter what retail does the bank is the 900 lb gorilla that will decide its direction and if they are heavy long or short they will force a profit..they have the power to move the market at will regardless of what retail traders do.
This afternoon on N/U was a good example of part of how they play the game IMO...the banks obviously pulled their bids for an extended period and was clearly seen by horrendous spreads.This action caused N/U to have no stabilizing force in the way of firm bank bids which in turn caused stops to be taken out on both sides of the price action..and if stops are now cleaned out to their satisfaction they can now drive it up..or drive it down with less interference.We still don't know their decided direction but probably will overnight tonight.
In the case of N/U they just might run it up on the hope that tomorrows rate decision on the kiwi bumps rate to 3% tho consensus holds at 2.5%.On the other side of the coin the stop run could just as easily clear the air for a break below .82...only a fly on the wall can let us know the facts beforehand..what the banks decide to do is what they WILL do!