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Strategies & Market Trends : Analysis Class for Beginners

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From: Arthur Tang6/21/2007 8:40:46 AM
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When brokerages made obscene profits, it is generally covering their short interests or investment bankers did merger and acquisition and ipo.

Recently Morgan Stanley did very well for the last quarter. There were very little M&A executed, but the equity was volatile. Buying back borrowed stock maybe from their own customers will be at a profit?

We expect more sell back will be good for the market makers and specialists. Then some inventory can be accumulated for the market to go to the next high. Pull back is buy back. Nice move is to liquidate inventory. The name of the game is trading volume. NASDAQ and NYSE both do better above 2 billion shares traded each day. If volume stays below 1.5 billion shares traded, the market usually dipped(buy back) from lack of interesting situations. The cash has to move to something interesting?

The secret of stock market is sector rotation, moving money into sectors in favor. Daily Wall street sentiments based on technology change, or demographic changes, or turn around situations made the market interesting. So, companies that are dormant got no attention at all; on the other hand, a quick call to the CEO, can start something quick. Money can move back to any sector with better(quicky consolidation or diversification) business management plans, in no time at all. Some of us like supply chain software or instantaneous profit and loss statement adjustments on the fly. Its a skill we have yet to acquire?
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