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Strategies & Market Trends : APMP (formerly APM)

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To: dmccoach who wrote (8183)11/5/1997 10:04:00 PM
From: AlienTech  Read Replies (1) of 13456
 
Cashflow determines if people are buying shares or selling them. If most of the sales too place at the ask then people are buying and cas flow will be positive. But what if the bid keeps getting lower and the ask follow it lower but people still buy it at the lower price? Well thats why cash flow is not an indicator by itself. But I do remember when ASND was 50+ someone pointed out that the cash flow was getting seriously negative, ie they were selling it at the bid, but the price kept on climbing so it was hard to pin point it at the time. But we know that when shorting you cant sell it at the bid, but you can sell it at the bid+1/16, so the price was rising but over all cash flow was negative. Bloomberg has options to let you see which direction the cash is flowing..

Now to your questio of sales to cash flow.. hmm thats a good one.. But I have no idea :)
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