WHO MOVES THE MARKETS?

Amongst the things you should know if you want to be a complete trader,
is who moves the market. If it’s a NASDAQ stock, you should know which
market makers are the most active in it, and you should try and find out
which position they are taking. Are they getting long or are they shorting?
This is something you can get the hang of if you trade the stock all
the time or you have a friend at Goldman Sachs you can call who knows
everything.

You should know if the market or stock is included in any hedge fund
and then know what the funds are doing. Are they buying or are they liquidating?
Are they accumulating or shorting? These things can help you
determine the possible direction of the market. If you know all the players
and know what they are doing then you have a heads up. If you know all
the hedge funds and major players are long then who is left to buy? No
one—which is an indicator that the market may be running out of steam.
You should also get to know the open interest in a futures market and understand
what it means. Open interest when combined with volume can
help you determine in which direction the market is most likely to go and
it is a great tool to have.