Page 53 - A Complete Guide to Volume Price Analysis: Read the book then read the market

The insiders then move into the accumulation phase to restock the warehouse, and move prices back and forth in a tight range, to shake out any
last remaining tenacious sellers.

Towards the end of this phase, the insiders than mark prices down rapidly, flushing out more sellers, before moving the price higher later in the
session to close somewhere near the opening price, helped higher by their own buying in the market, with bargain hunters also sensing that the
market is 'over sold' at this level.

This is repeated several times, with panic selling d tnic selcontinuing as frightened investors and speculators can take no more. They capitulate and
throw in the towel. This is the last hurrah.

The insiders are now ready, with warehouses over flowing with stock, to start the march north, and begin the bullish trend higher, in nice easy steps,
towards the target price for distribution.

Once we accept the fact that all markets are manipulated in one way or another, then the rest of the story simply fits into place.

The above is very logical, and common sense, but don't be misled into thinking that this is simply not possible with the current legislative authorities
now in place. Nothing much has changed since the days of Wyckoff and Ney, and here let me quote from 'Making it in the Market' published in
1975.

This was a telephone conversation that Richard Ney had with an SEC (Securities and Exchange Commission) official. The SEC is supposed to
regulate the financial world in the US.

Remember, this is 1975, and this it what was said on the telephone call, when the official was asked about checks on specialists and how they are
regulated:

“specialists are under the Exchange. We don't get too concerned with them. They're not directly regulated by the Commission. They all operate
under self regulation. They make their own rules – the Commission just O.K's them. Only if the Commission feels there is something not proper
does it take exception. We check broker-dealers but we never go onto the Exchange to check out specialists.”

So has anything changed?

In reality very little, except to say that trading is now largely electronic, and one of the many problems faced today by the SEC is HFT or High
Frequency Trading.

There are the usual cases, where individuals and firms are taken to task to prove that the SEC and others have some sort of control and to
assuage the public, that the markets are regulated in a fair and open way.

Sadly, as I hope the above shows, and in using VPA live will quickly prove to you, this is most certainly NOT the case. The insiders are FAR too
experienced and wily to allow their golden goose to be killed off. They simply devise new and more elegant ways to manipulate prices for their own
ends.

Let me quote from a recent release from the SEC in response to the issue of HFT :

“There are a number of different types of HFT techniques, and an SEC Concept Release [6] broke them down to four main types of strategies:

Market making: like traditional market making, this strategy attempts to make money by providing liquidity on both sides of the book and
earning the spread.

Arbitrage: Trading when arbitrage opportunities arise ( e.g. from mis-pricing between Indices, ETF's or ADRs and their underlying constituents.

Structural: These strategies seek to take advantage of any structural vulnerabilities of the market or certain participants, and include latency
arbitrage or quote stuffing.

Directional: These strategies attempt to get ahead of – or trigger – a price move, and include order anticipation and momentum ignition.”

And the date of this report? - late 2012.

I don't wish to labor the point, but I am conscis a I am cous that some people reading this book may still consider me to be a 'conspiracy theorist'. I
can assure you, I am not.

As Ney himself points out :