Manipulation and Technical Analysis

It is no secret that the markets are manipulated. Periodically, the question is asked if the Dow theory, cycles or any other technical methods can remain valid in a world of extreme manipulation. The short answer is, Yes. While manipulation can have a temporary effect on the market by stretching a cycle, it cannot fix the underlying problem or negate the natural cyclical rhythm of the economy or the market. In fact, history clearly shows that it is not nice to mess with Mother Nature in that the inevitable cyclical ebb and flow will have its way. So, yes, the natural cyclical forces of the market can be extended through manipulative practices, but ultimately such manipulation only serves to make matters much worse in the end. Thus, the efforts to manipulate, control the market and the economy and even the belief that they can be controlled is a cycle in itself.

Manipulation and Technical Analysis