Hi REM55,
I appreciate your comments.
This report is absolutely on the button. The theme of much of it's contents is basically why I made my comments last night that Four Psychological Dynamics would prevent the Q from pulling back greatly.
It's general theme is also the reason I said the Houses would not be in play today and relatively speaking they were not.
There are only two times that the retail or individual investors will be in control of the markets or stock movements. Those two times will always be Seemingly Irrational Exuberance on the upside and Seemingly Irrational Dismay on the downside. Well today you saw the former.
As I have said before, the only time the Houses can exert their influence on any stock or market is when everything is basically equal, ( just imagine placing a broom stick in front of you and how easy you can determine it's direction with just a slight push of your finger ), well the problem we have is that the markets are pretty well in an equal state 90% of the time which allows the Houses plenty of time to operate without drawing a lot of attention.
The Large Houses are not ruled by Psychology, their moves are based on reason and facts. The masses or retail investor's moves in an atmosphere like we have seen the last several days in QCOM are based on leaps of insight and incomplete patterns or hunches.
The beauty of such an environment is that the psyche of the human animal comes out and lends itself to unusual predictability.
the four Dynamics I mentioned last night were:
1. Psychological reaction by the masses to the Confirmation given to Qcom by the street, the media, ( WSJ, CNBC, CNfn etc. etc. )
2. The Psychology of an extremely rare opportunity to own 4 times as many shares of a stock that the individual stock owner or potential buyer adores and convincing himself or herself that everyone in the known world will surely have the same conviction and concept.
3. Psychology in his or her mind of knowing only a fool or a day trader could actually sell a stock as good as Q before a 4 for 1 split!
4. Lastly but one of the most critical, The Psychology of TIME or lack thereof, - my god, we only have so much TIME to execute or carry out this once in a lifetime opportunity! Buy, Buy Buy!
THIS SHOULD CONTINUE UNTIL THE SPICKET OF PSYCHOLOGY RUNS DRY - this should occur around the Psychological price of $400.
Houses not only do not operate on such a principle, they avoid it.
So I am absolutely in agreement with the article and give them credit for their insight.
Selah,
Voltaire |
