Who are the market makers?

You don't affect the price of things. People with lots of money do.

 

Sun Tzu: “Every battle is won before it's ever fought.”

 

I'm not ashamed to admit that I ride the coattails of the banks and traders moving lots of money. I do the opposite of what the average retail trader does. Works pretty well.

 

My god, the truth in this statement.

 

The prime brokers will fade retail and lure speculators into moves using their control of the basis. They can offer heavy into the basis and then pull the offer to print a rally in order to lure long spec into a move.

They do this to move the market into favorable price levels. Once the price levels get where they want them, they can move huge size by bidding hard into the offer.

This will give arbitrage to HFT market makers which allows the bulge brackets to do huge size at a level they know is temporary (because they forced the market to this level). This is so they beat VWAP (they guarantee VWAP to their clients).

 

Are you talking about Trump's trade war?

 

What does that look like on a chart?

 

No. The US is the loser as China grows stronger.

 

This is a synthetic portfolio with a typical (unhedged) asset allocation. This is 28% blue chip stocks and 72% treasury bonds. You can see them working the market to get liquidity so they can get hedges on and/or take hedges off.