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Non-Tech : The Critical Investing Workshop

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To: zello who wrote (26612)7/25/2000 10:32:01 PM
From: Voltaire  Read Replies (2) of 35685
 
If 130 million shares were bought over the last 4 days weren't 130 million shares already also sold?

YES - but you must understand if the major Houses are working in concert with each other for the sake of their funds and with no upward pressure from the retail investor which can come only with a fantastic earnings report because most of the retail investors have probably already bought in anticipation of a run up, where does that leave the Houses?. NOW - that leaves the Houses in a position to just saddle the stock between each other and have their stock of in house inventory be the buffer and then there is nothing more than a technical sale for the sake of the SEC. Everything being equal the Houses only need from a half to a point to saddle with no upward pressure but with the obvious number of shares to exchange they will need more than that and that is why I feel they will build themselves a buffer tomorrow of about ten points down from todays's close. In other words if you have in house inventory and one of your funds has to purchase, simply sell that fund your in house inventory and then adjust later. Beats paying out the ass for the stock and I THINK THIS IS WHAT WILL TRANSPIRE.

KEY - it must be a stock entering the S&P that are largely held by the Major Houses, thus in stock inventory.

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