Interesting Pre-Market DAX move

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Joined: Tue Jan 28, 2020 8:07 am

Interesting Pre-Market DAX move

Post by Davef16 » Tue Jan 28, 2020 8:31 am

I thought today's move on the DAX pre-market was interesting.  My question is this major trader spoofing the market down and buying his own shares just at a lower price and to force the market to react further up?  This seems like an extreme case, but is it a pattern that could be traded with some confidence?  

See the attached screenshot.   There is a clear support area with some liquidity when the market broke lower at 13275 and then more liquidity flipped.  The spoofing (if it is really spoofing) starts in earnest at 13267 and shifts down at each lower move.  It is pre-market, so the book is very thin at about 5-8 shares.  The major trader is putting over 100 shares at these levels with obvious effect to force the market lower with only a few traders buying into this high liquidity.  But it is not just spoofing where this liquidity is pulled, there is trading into this liquidity and it finally gets taken out completely at 13259.  At the micro level all of this liquidity is traded, none of it is pulled in the last microsecond.  After this bottom, the market moves quickly back to the old 13275 level and above to continue trading around that level.  

Curious as to your thoughts on this move.
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