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Technology Stocks : Semi Equipment Analysis
SOXX 314.52-0.6%Dec 11 4:00 PM EST

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To: robert b furman who wrote (49158)8/27/2010 11:27:00 AM
From: The Ox  Read Replies (2) of 95574
 
Take this with a grain of salt (or sand<g>).

I've heard talk these past few days of a couple very large hedge funds that are closing their doors and returning billions of dollars back to their clients. With the low summer volume associated with a lot of stocks, these types of situations can create a substantial imbalance, as the funds decide they "must" continue to sell out their positions over the next few weeks.

Say these guys have a number of decent sized positions in some illiquid small and midcaps. Right now, no one wants to take a few hundred thousand (or millions of) shares off your hands, so you sell into this weak market. People who watch those stocks will think there is something wrong, yet its only a big fish bailing on their position, swamping the normal flow of trading.

Clearly, this is not why the entire market is weak but it certainly could explain a number of "weak" acting stocks, where the news is much better then the trading suggests.

fwiw....

TO
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