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Strategies & Market Trends : Shorts waiting to happen

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To: Cadaver who wrote (306)7/22/1996 1:38:00 AM
From: Kris Barski   of 852
 
Movement of money you are talking about is medium term thing and it doesn't go in to a stock market. As a matter of fact there is a talk of foreigners pulling money out of our markets(caused by the correction and weakness in dollar). What I am looking at is flow of funds in to Mutuals(fuel for the markets) and speculators(there is no such animal like investor) psychology. Inflows in to Mutuals declined from 25BN in May to 15BN in June. There was a net outflow of 4.5BN last week. From January to June they took in 125BN, all of it has already been spent. With all that money around MARKET WENT DOWN. Cash position of Mutuals was at all time low of 6.7% at the end of May(don't have the numbers for June yet). No wonder they can't support the market anymore. They simply run out of money. And now with people redeeming it doesn't look pretty. Speculators are bearish but not bearish enough. They are scared to death. They are not in a buying mood. They are dying to get out alive. That is why the latest rally is already faltering. I watch the tape 7 hours a day and I can tell you there were no buyers on July 11,12,15,16 till noon. Rally we got on Wednsday and Thursday was caused by deeply oversold sytuation and option's expiry. Put/call ratio was at extremely high 1.1. It had to rally. But now all the traders who bought on Wednsday are looking for buyers. From now on it is just traders game(until markets stabilize), long term investor is either dead or to terrified to enter the market.

P.S. Why don't you guys merge this and dppl's threads in to one. Both are dealing with the same subject. It is hard to read and write in both.
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