The foundation of price movement as we all know lies in
supply and demand. Take the emini, all it is intraday is an auction of who is
willing to buy based on sentiment whatever that may be at the time. We have all
heard of trading ranges, but for the sake of mutual understanding here is an
example:

That is an intraday example of buyers and sellers carrying
out the auction. Often times you may see a strong move up and consolidation for
a few days then test lower. What is happening? Sellers who bought lower are
selling, when prices fall back often to previous volume points of control or
accumulation areas, it is solely price discovery to see, do we still have
buyers down here? When a trading range breaks, sellers close the cupboards in
the pursuit of a higher price to sell at, shorts begin to cover and as a result
price goes parabolic.

My view of market price is that big buyers buy and later
sell at higher prices, market makers, floor trader and other insiders brutalize
the tape in between these major areas of accumulation and distribution.  Here is an example of something that
may play out this coming week:

The target, for if this unfolds, is unknown, however sellers
have found that people are willing to buy above 1100, so if they accumulate
they will look for buyers and prices will continue until buyers and sellers
once again hash out price.

Why these areas? Mainly due to the low volume pockets
especially given the much larger volume below where buyers and sellers have
hashed it out and price has moved higher. 
Where do trendlines and other examples of TA come into play?  The trendline is just an
aspect for sellers to decide to distribute and the flipside is buy at support.
Notice when these are broken either supply or demand evaporates and prices
sprints to find either supply to meet demand or vice versa. Re -testing
trendlines, prices have broken above and have now met distribution, they fall
back looking for more buyers, if found the trend continues.

This may seem blatantly obvious as you are reading this,
however I feel it is often overlooked. If you change your perspective of what
your trading, for example, if you view an emini contract as a physical asset and
you see that people are willing to buy at 1110 and we are at 1065 where buyers
and sellers previously hashed out price, then it is something worth buying to
sell to someone willing to pay at a higher price. In order to do this you need
to take a long term bias out of the equation, price isn’t always reflective of
terrible economic conditions, ask yourself, are there buyers willing to buy
higher up given previous price movement? If so, and you are near an area of
accumulation than assume prices will rise and vice versa if we are at extreme
levels and buyers aren’t found and there are areas lower where buyers viewed it
as cheap go short.
That is the essence of mean reversion trading.

The red line appears to be a place where major distribution
would occur. A few reasons for it is that people who have held through this
mess want their money back and would be taking it. Imagine Microsoft where it
took a very long time for prices to break 30 per share because each time,
millions of people tried getting out near the price they originally paid.  People who held through this aren’t
going to trust the market and will want out if we get there.

Below is a summary of the major sectors. As you can see, it was a good week with all major sectors in the green.

I've included the chart book with weekly, daily and monthly charts for your viewing in addition to all 164 sectors sorted by weekly performance. You can find that here. There were three negative subsectors for the week:

All data furnished in the reports are courtesy of Stockcharts, and the compilation courtesy of me.

(Stocks were rattled Thursday after hours due to the announcement that the Fed was raising interest rates to 0.75 from 0.50.

"The Fed has been supporting the banking sector since the crisis with extremely low rates. "It's a wake-up call that easy money won't be around forever. That's not good news for the banking sector and the U.S. banking sector, especially," said chief market strategist Howie Feltersnatch.

Rumors that the nude photos of Snooki (from Jersey Shore fame) were fake or an elaborate publicity stunt crafted by Snooki herself; sent US futures lower and put Asian markets deep in the red. European Indexes did recover from the news.

"Europe has a much more relaxed stance on topless women; we were also the first to perfect the art of tabloid reporting. We expect this to have little to no affect on our markets," said Nigel Toughskin.

On Friday, US markets opened up weak. Investor confidence was boosted after Tiger Wood's speech, showing signs that the economy may continue to recover with Tiger Wood's sexual rehabilitation and his return to Buddhism, which could also help the Asian markets rally further.

US markets held their gains into the close on the news that the Fed was raising interest rates to 0.75 from 0.50, which many Investors say shows strength in the banking system.)

If there is one thing we should all learn from this past week, it is that "THE NEWS DOES NOT MATTER". Read some EW stuff, basic TA books or some of Gann's stuff going back to the early 1920's! They all tell us the same thing.

I saw many good risk/reward setups on the short side this week, and got stopped out of all of them. That is very frustrating, but I have a plan and I'm sticking to it. What is disturbing to me is that many people do listen to the news and trade off of it. My BFF, (and fellow ghost hunter) Ricky Magnuson, called me Thursday night and told me of the news that the Fed was raising rates, he said he was going all in FAZ and TZA after hours. Well he got crushed on Friday; and would be much better off if he learned some TA and traded off of what he believed his charts were telling him, not what others say or what he hears on the news.

How many times have we heard, "It's all about the dollar," or "wait till the fed raises rates." Sure these do factor in to the big picture, but I try to avoid all the noise I hear on TV. The dollar has been rallying since Dec, my short positions have not… The fed's announcement didn't help them either. I guess it's was all baked in, so why pay much attention to it.

A lot of times, this sort of "news" only produces an EKG wave setting up a bunch of bears for a nice trap, and freaking the crap out of the bulls that went long that day. The market is going to do what the market is going to do, and it wanted to go up more.

Lastly, I know how financially hard it is for newspapers and the media right now (I have a cousin that works for one and is always fearful of losing his job). If any higher ups at the NYT, CNBC or whatever are reading this; if you need to cut costs, fire some of your more expensive reporting staff and hire me. I will work cheap (free beer or gas money once I get the Fiero), you can contact me at nathainel.goodwin@yahoo.com. I can come up with an endless supply of dumb “news” reasons the market is going up or down which we should probably all ignore.

Here is one chart I trust more than the news.