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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 220.28-6.4%3:59 PM EST

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To: Sam Citron who wrote (14668)4/27/2005 8:49:27 PM
From: BelowTheCrowd  Read Replies (2) of 25522
 
Keep in mind that pricing is determined at the margins of supply and demand. It is not a straight-line relationship. If there's only a 1% "shortage" it can be catastrophic, because the question becomes, "how much are people willing to pay in order to not be in the 1% who are squeezed out?" That little 1% shortfall can move markets in a huge way.

Also, as has been noted here, while there aren't 40% more drivers IN THE US, the oil market is a global one and demand from China and India continues to grow in the double-digit range.

-btc
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