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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: dvdw© who wrote (14939)11/1/2002 11:33:12 AM
From: Killswitch  Read Replies (1) of 19219
 
I don't see how what Maria said is different than what I said... MF had developed some cash from mostly selling stock in July and after July, and after covering the continuing redemptions in Sep and early Oct they had enough left over where they felt ok throwing some at the market.

What am I missing?

I understand the theory that enough supply has been sucked up that we will rally, but to me that simply makes me think "what happens if a situation occurs that produces yet more supply, and also causes those previous accumulators to want to sell?" That is the risk... mass correlation of people on the long side + some event or series of events that cause them to want to sell = large possible imbalance in sell pressure with no one around to buy it.
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