Been reading Master The Markets but got stuck making sense of the following:
Pg 32 – Testing Supply
The danger to any professional operator who is bullish, is supply coming into his market (selling), because on any rally, selling on the opposite side of the market will act as resistance to the rally and may even swamp his buying. Bullish professionals will have to absorb this selling if they want higher prices to be maintained. If they are forced to absorb selling at higher levels (by more buying), the selling may become so great that prices are forced down. They will have been forced to buy stock at an unacceptably high level and will lose money if the market falls.
This seems to imply that a bullish operator would want to be buying at higher prices? Would it not be that one buys when the price is low (accumulation) and sell when the price is high (distribution)?
Am I missing something?
Would be great if a learned trader could share some enlightenment on the above.