AUTOHOME, Inc Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AUTOHOME, Inc

ATHM 23.41

+1.5%

Dec 22 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Egret who wrote (19683)	2/16/2000 1:55:00 PM
From: ahhaha	Read Replies (3) of 29970

Well there sure has been a lot of buying in ATHM all the way down and it is exactly the buying that has helped MO all the way down too. Without that buying the stock would have no market. The buying allows it to persist downward. It's human nature to buy all the way down to fractions. This has been the history of Wall Street. The problem is that you don't know what buying and selling is. You've extrapolated a definition based on personal experience. Further, you can't make these claims about asymptotic limit price structure based on local observation. The local does not determine the global structure. I hate to disappoint you but MSFT's rise has been exactly that, a predominance of money exiting. Now there is the public buying since they have finally seen the light, so once MSFT's latest product is released, price will gravitate to where the public would like to buy it "cheaply". Price is not determined by the volume of money moving in or out of it. Price is determined by the rational expectations for future earnings and relative growth rates. You could have massive selling hit MSFT and instantaneously the stock would decline, but it would recover in a single leap on a 100 share order if someone had the conviction that the stock's instantaneous price did not reflect rational expectations. What you patzers do is buy when the opposite is the case and a stock is sensitive to the downside. All those patzers are buying below and the price gravitates downward attracting more and more buying interest below, so down she goes. It follows you'd better locate a stock that the public has been buying for some time and has been declining accordingly. I wonder what stock fits that bill?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next