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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Electric who wrote (6904)3/17/1998 12:39:00 PM
From: Robert Graham  Read Replies (1) of 42787
 
This is strong evidence of heavy selling by the smart money into the rally afforded by the split announcement. The smart money always takes advantage of good news and a rally it causes in a stock to time their major sales. When the smart money moves out of a stock, the stock will never behave the same way as the momentum stock it once was. Sounds like it is time to move on to another stock.

For that matter, I think the institutions have been selling the box makers since they were the first ones in this type of stock back when this rally started. I suspected this would turn out to be a short term play on their part as a way of finding a place for their money until they figure out where the market is heading.
So you have basically what I term as the "insider selling" of this stock. Insider selling in my use of this term can include but is not the same as the insider of the company. I mean this term in the sense of the market itself like the professionals, institutions, and so forth, that "inner" group that has the most impact on market prices through their decisions which the average Joe and Jane trader is not a member of. This "insider selling" appears to have been in evidence for a period of time now.

Bob Graham
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