Manipulation can not keep a good stock down forever. That is what is happening now, and the regulators and politicians are AFRAID of the economic power of those who are basically STEALING from the rest of the market investors. But that can not last for long. Self interest and basic math prevents it. Short Sellers can flood a good stock like EMC with sell orders and drive the price down, and buy to cover their shorts. But when you are at the bottom, it can not go down anymore, so short sellers also lose on any continued conspiracy to sell short. Short Sellers and market manipulators have to let the stocks rise, so they can then short sell again. Eventually the economy, that is, contracts to fill increasing inventory and supply chain demand, that is, EARNINGS INCREASE, and this drives the stocks back up, many times taking short sellers by surprise, and they get knocked out of the market for a long enough time to allow the stock to rise back to former highs while the stock also get continued support from higher and higher EARNINGS. Storage will lead the markets in advance of the economy recovering. In these high tech better communication better computational times, the LAG or GAP will be less, that is, the time between the market recovery FIRST and the Economic Recovery SECOND will shorten, unlike prior times when this time period could be as long as a market recovery 1 quarter or 2 quarters in advance of the economic numbers proving the economy did recovery as "predicted" by the market (that is 30 to 90 days in advance). I see this time period now, could be only 20 days lag. That increases volatility this time around, since it also means the market recovery we thought would have happened right now was delayed forward (Cast Forwarding) towards the economic recovery. We are on the verge of the recovery now on all fronts.
I am,
Truly your$,
-Crystal Ball |
