Ok geez. Your post can be understood as it was some alternative method. I read in some other forums about people trading this way so it´s probably just as possible as any other method.
I don't know what's your definition of new positions. Regardless, I'll say it again, your usual culprit (market events) move prices. Mark
Can you explain more in depth? News does not move price. Only the interpretation of news by traders who click on the buy or sell button. Or did i missunderstand you?
At its most basic level its order flow that moves the market. Ask yourself "who's incontrol of the inventory" as Dalton puts it If the are 2x as many buyers then sellers the market is gonna be moving up when selling at that given level dries up. In a sense the Fed does the same thing w/ money flow and booming/busting economies.
Yes, you can use ET search to read all my prior discussions about what moves the market. Yes, news does move price and will continue to do so. Yes, your correct in that traders react or anticipate the news (my way of saying what you said). Mark
afterall, you don't get lows unless there is mental justification for them... otherwise prices would be a oneway street. this is very typical action when a long term equity high is encountered.. people decry the bull is dead...