Friday, February 4, 2011

Classic "Pre-news stop sweep"

 Classic HBB "Pre-News Stop Sweep".   The real question is, with so many market makers, and so many participants, how can they coordinate this action and how can they get away with it?  I guess they can just blame it on the quants and bots,but c'mon folks, this is obviously a coordinated effort involving many millions of dollars.
I have seen this action for years, prior to an anticipated and publicised  news event such as a Fed decision or a big employment report.   The example here is prior to the employment report.  As folks tighten up there stops on both sides of the trade, HBB wipes them out with this "Pre-News Stop Sweep"

 Last night, I called this a "fake break" and went short, and that was a beautiful move.   Stop is at small profit, and there is plenty of room to breath and let NZD make a large move downward.   When you have room to breathe, you don't have to "get cute" and try to trade every up and down, which is exceptionally hard in these "modern markets" 

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Insightful and Useful Comment!