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| Thursday, December 30, 2004 |
| Monday, June 6, 2005 11:27:48 PM |
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Big money tends to be "smart" money.
Smart money knows what the rest of us are trying to find out; Be it fundamentals, news about to break, whatever.
Big money acts on what it knows. Big money leaves "tracks". They cannot hide their trades, although they can and do, for as long as they can get away with it, a good job of misrepresenting their intentions much like a good poker player.
Floor brokers, market makers, and traders having access to the floor know which brokers represent big money.
When you see such a broker working an order in size while trying not to disturb the market you can tell which side of the market he's on and you act accordingly.
It's called "piggy backing". You figure he must have his reasons: When you see a Swiss banker jump out a window, follow him because he's probably going to make a fortune on the way down.
Everyone is working on imperfect information except the one who "knows" and he isn't talking. But he is acting.
The trouble with the "fundamentals" that count is that we will never know what's important to know in time to benefit other than observing the actions of those presumed have such knowlege.
Therein is the "art" of interpreting tecnical analysis.
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