Technicians have known it forever. Most investors have learned it the hard way. The “Level Playing Field” is full of gopher mounds. There is always someone who has an advantage in the market. It might be that they have more knowledge of an industry or a particular company. It might be that they are more disciplined. Or, as this article and video point out, it might be that they are large clients of a large firm. As Mr. Blodget points out, the playing field will never be level.
Neither the market nor life is fair. Once you accept that, you can focus on finding tools to overcome that problem. Technicians use price as a tool because it reflects the constant battle between supply and demand, regardless of whether it is a result of “huddles” or published material. We have chosen to use relative price (strength) because we have found it to be the best way for us to eavesdrop on the other teams’ huddles.
