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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (666)	12/4/1997 3:29:00 PM
From: Arthur Tang	Read Replies (1) of 1471

Market makers' action and moving average(number of days) relationship? Message 2875367 How do you prove that 30% down, is due to a run up of borrowed stock? short interests are published on all the exchanges on the 15th of the month. Price to volume charts are historic. Moving average can be superimposed on the Price on dates chart. If moving average is selected to coincided the number of days to the run; the average cost of the borrowed stock is known. If cost of borrowed stock is about 20% lower than the new high, then 30% down will give the market makers a 10% profit on each share bought back. So much for that. What about 70% down after 30%? The borrowed stock increased due to lower price. Average cost of borrowed stock came down with larger volume. Buy back may still be 10% profit.

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