Have u ever wondered during a free fall like Jan 21, why there is heavy selling by FII's as if they all work in tandem.
weakness news was coming since early January but fall took place after the 19 Jan(which happened to be the closure of Rpower IPO).
the book in which , cartel of financial institutions, financial experts, influential HNI people all over the world, were collectively referred as " Electronic herd" is "The lexus and the olive tree".
members of the electronic herd are supposed to be hand in gloves with one another and all work for cartels betterment.
actions of the electronic herd causes major upheavel in the world financial markets.
Now I come to the original point.
Take an ex.
Suppose by 10 AM to 11:59:00AM, TBQ is almost double of TSQ. we take long position according to it at 11:59:30 AM.
And the electonic herd is determined to start selling by 12 PM. suddenly TSQ starts increasing and by 12:10 pm TSQ becomes thrice that of TBQ.
see, what shell be the plight.Though probability of such incidences are rare .
Morale, we should not blindly believe in TBQ/TSQ all the time.
PS: I never read the aforesaid book, but this citing was there in one of the Robert Kiyosaki's book, which I happened to read.
If I recollect the name of the book I shall update the forum about it.
mahesh