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Gold/Mining/Energy : Nuvo Research Inc

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To: Joe Krupa who wrote (8404)1/10/2002 10:50:07 PM
From: axial  Read Replies (1) of 14101
 
Hi, Joe - Thanks for your responses on this.

I'd just like to add something, as a sort of sidelight to the whole question of the Acqua deal.

I don't think I have ever seen a more vivid example of market psychology at work, than when these shares are being shorted.

When the perception is that the shorting is over we see these little frenzies of acquisition. What happens? Of course, the price is driven up, and volumes increase.

As soon as the Three A's start shorting - well, it's like pouring water on a fire: it extinguishes the buying, and the volume. The bulls come screeching to a halt, baffled: like they've all been stunned.

Yet reason and logic dictate that the time to buy (in this special case) is when it is being shorted: that's when volume should increase.

The interplay between thought and emotion that's being played out in the market on DMX right now, is a study: a fascinating display of human nature.

Best regards,

Jim
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