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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (1231)	2/21/2001 6:16:13 AM
From: Arthur Tang	Read Replies (2) of 1471

Currently, market making is going through "take out the weak hands". The terminology while speaks of evilness; in reality is a necessary evil, to buy back the stock from weak stockholders. In order to move the price up, the market makers has to promote the weak hands to sell first; otherwise, the minute offers are moved up, they will sell and take profits, preventing a nice move from happening. Nice moves help market makers to clear their surplus inventory. So, it happens before any nice moves. In the normal January effect, stocks will pull back before March 15 and will not have nice moves until after April 15 precisely. So enjoy this "take out the weak hands" period which is temporarily, and do you selling before March 15 or sooner.

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