The Volume Data

Use of the volume data is what the hedgees, the leverage kings of private equity, don't want you to know because it smacks of rigging the market--of causing market prices rather than predicting them, which would be price manipulation, and that is illegal.

The volume data is a secondary, or lower level, analytical indicator used by hedge fund managers to predict, if not cause, buy and sell points on the trage according to who owns what when.

You know the old Wall Street saying: the market can wait longer than you have money. The hedgee can wait till you have to sell to stop and reverse a trend, lure the investor into chasing the value, indicated by the volume, and then deflate it with a massive money flow that leaves the investor on the negative side of the trend. The result is a consolidation of capital into the accounts of consolidated capital.

Take the Wal-Mart business model, for example. It is predatory based on volume discounting, and even if it means you may have to take a loss, all that matters is that you bankrupt, consolidate, the competition. The result is a gain (a loss) that is sold as "Always the Lowest Proces in Town."

The same model is utilized by the hedgees that manage consolidated capital. They will gain long by making the small investor, like the samll retailer, weather a negative trend that is caused by a high volume inequity on the bid and short selling. The hedgee can afford the loss for the gain of dispossessing the competition and consolidating the capital. This is largely accomplished with volume data indicators and high volume market activity that the small 401k investor is virtually no match for.

The only thing the small investor can do is monitor money flow indicators for buy and sell points so to not always be on the wrong side of the market or spooked into selling at a loss (the consolidated value) typically with volume at a bid that forces at least a 20% decline in value.

Now, understand, this model is applied on the macro-economic scale of business cycle dynamics as well. The current financial crisis, the liquidity crisis, is part and parcel of the hedgees operational model to capitalize on the move from traditional pension funds, and the PFGC is bankrupt, to the 401k and the like.

While there are more sophisticated high-tech means, all the Hedgee has to do to figure the who owns how much of what when is, the hedge fund capital minus the total capital equals the amount to be consolidated, or to shake out.

At the macro-economic level, economic recovery will not be allowed to occur till at least 70% of the unconsolidated capital (savings) is shook out, or repossessed. This is much more sophisticated through an indirect market mechanism, all be it not a free market mechanism, than just raiding your pension fund, and the government's guarantee is bankrupt now anyway. This technique has the elegance of a false collective legitimacy. It only loses its legitimacy when the market participants figure out that it is not a free market when there is an inequitable bid ever present and operational, causing market prices rather than predicting them.

Understand further that the bailout legislation will not reverse the macro trend, it will sustain it to allow for maximum consolidation of the wealth. A recovery will not occur until you are empirically determined to be sufficiently dispossessed,

The legislation is nothing but a Wall Street bail out.

The bail out needs to be a recapitalization in YOUR self-interest.