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Stocks & Narrarive
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I will say this over and over, every stock has a narrative. Narrative meaning there is a set plan for the stock before it plays out. These narratives are created by large hands: Pension Funds, Hedge Funds, Banks, and Insiders.
Big hands have a few different things they need to fulfill within their narrative. Quantity of shares and price of those shares. The issue is they’re working against a few things. Time, liquidity, and retail traders cause them problems. Let me explain.
First if they don’t know the amount of shares they want, they must create an event to do so. What does that mean? If a large hand knows lots of retail traders own a stock in a specific zone. They will now intentionally dump the stock to that area. Scaring those people out.
This is called creating liquidity, by using emotions of others in their favor. Another issues they work against is time. Large hands must take time to accumulate shares. Do you know why? Remember I said one of the thing apart of their agenda is stock price!
If a large hand needs to accumulate large amount at a certain price he must do this without affecting stock price. Imagine how difficult it would be for a large hand to go unnoticed absorbing 100s of millions of shares. VERY HARD.
So he must take his sweet time to absorb these shares without going noticed. He will now create moves to keep us at low prices by selling into pops and trapping longs. Until he accumulated enough shares and allows us to push.
