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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (1234)2/23/2001 3:28:56 AM
From: Arthur Tang  Read Replies (1) of 1471
 
Weekly "ebb and flow"(am I the inventor?), what is it?

There is a momentum play going on each and every week. It is the momentum generated by brokers in full service brokerages. They split commissions with the brokerages and can get two weeks of $750 in advance if commissions fall below their living expenses. Most people blame churning their accounts on brokers. But they live on commissions alone.

So, to supplement their income without churning their customers, they do momentum investments, since they don't have to pay commissions themselves.

Mondays usually open with amateur orders, then funds receive their daily cash in the mail. By 11 am. the orders from the funds will all be in. The momentum starts. In a week it will either go from pull backs to nice moves. Or nice moves to pull backs. Two complete cycles in each week. By Friday morning, the street will clear all their accounts and take home their weekly earnings.

If you study first the market trend Monday 11 am., then the top 10 volume stocks, you can get into the momentum game too. You will be paid handsomely by the specialists and the market makers if you buy large blocks(small gain per share). And they all come out of the pockets of fund investors.

Good Luck.
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