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Strategies & Market Trends : Analysis Class for Beginners

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To: Chartgod who wrote (1469)12/30/2008 4:18:41 AM
From: Arthur Tang   of 1471
 
The new thing on Wall street is that specialists and market makers do short selling. If no fraud is committed then market always have cash to redeem stocks. 1929 will never happen again, except if fraud is committed such as ponsi games being played by mutual funds escaping government regulation. Then government will have to own Wall street firms and democracy will go on to be communism.

Having said that. The motto has always been cash is king. You do not want to own stock. Day trade for cash profit has been going on for years now. Only sophisticated micro charting emphasizing volume or 'ebb and flow' will work for quick profits.

If you own stock, the company has to have dividends, and is the silent partner of market maker to sell and redeem their own stock. IBM is one of those companies. GE is not.

So, the analysis for beginners is not charting, but the fundamentals of market making, and have to watch IBM statements of the extent of their market making silent agreement with their specialist. IBM will be solid as long as they work for productivity to make cash profit.

It is changing in investment strategy, and cash better still be king. Wall street may be stabilized by communism, where all the firms are owned by our government, insuring all losses by fraud. Economy is stabilized by part time employment of just in time efficiency. Steady income to be disposed is the foundation of a stable economy. Over expansion will need more capital investment than borrowed capital or credit, which results in zero interest rates in Japan years ago; now in America too..

The future is controlled economical expansion thru productivity by computer automation. Government regulation has to be tightened.
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