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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: Donald Wennerstrom who wrote (53854)9/23/2011 11:12:53 AM
From: The Ox1 Recommendation  Read Replies (1) of 95572
 
OT:
I think this is the general view out there but I don't agree with it. When the market was tanking in March 2009, there was zero buying pressure. None. I have no problem seeing how $400 Billion buying from money markets could cause the stock market to rise by a factor of 5 or 10 times that, the net result of money coming into the market caused the $2 trillion net gains. No money coming into the markets caused it to crater by a greater factor then dollar for dollar. Similarly, the buying pressure caused the markets to rise substantially more then actual money put into it.

Did the Fed help the rise? Yes, absolutely without question. Were the banks buying stocks like mad? No, I don't believe that was the case. They were deleveraging and shoring up their balance sheets!!

JMO
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