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Strategies & Market Trends : Groundhog Day
QQQ 610.54-0.5%Dec 15 4:00 PM EST

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To: Jorj X Mckie who wrote (2736)4/30/2002 2:40:52 PM
From: GraceZ  Read Replies (2) of 6346
 
Near selling is what gives a rally persistence. Rallies fail when they run out of sellers. I explained this on another thread.

Message 17244740

What has been driving down price on the Naz has been positive money flow and net buying on declines. OTOH What has been driving down some of the big bloated Dow stocks has been negative money flow and selling (selling on rallies and selling on declines) although the DOW on the whole is positive money flow as well.

There is more than one regime working here. You have to remember there are four market states, total demand, marginal demand, total supply and marginal supply. You can have a total demand situation that meets up with strong or constant marginal supply. This leads to price declines even when money flow into stocks is high. If this persists long enough, supply is reduced significantly which means any uptick in marginal demand causes price to rise in a dramatic way.
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