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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: Jack of All Trades who wrote (12454)5/29/2002 2:13:20 PM
From: ahhaha  Read Replies (2) of 19219
 
With so much buying of stocks in the boom,

False assumption. Money flow peaked around the Oct '97 break, and fell decisively across '98, '99, until 4/01. Stocks rose because price was driven at the margin by the greed driven public allowed by an inspired FED while heavy distribution was being done by others. The result was a decisively negative net flow and was the greatest negative net flow ever measured. The reverse process is in gear now.

why can't the recent selling be from the long side not the short???

It isn't possible to distinguish between the two. Stocks aren't falling so much due to selling, but more to buying. You should ask yourself who is on the other side of all this selling. If there is little price concession on the down side, then it is easy to sell. Don't take the easy path.
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