Ken: Does the following scenereo make any sense?
Nextel suffered a big setback by heavy selling.
Nextel now is in the S & P 500, must be inventoried by certain firms.
In order to protect positions, the stock must rise to a predetermined sell point, so the firms can sell and rebuy lower.
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If the above is true then how about this as a possibility:
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Tomorrow, the stock will rise to that pre-determined position, then, another sell off.
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Tomorrow, Nextel may rebound by gapping up at the open, then falling backward during the day. Or perhaps, hold firm at the morning gap up throughout the day before turning down.
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The "buy in" should have been at the close today, easy money to be made first thing tomorrow morning.
But what do I know, I sure can't spell without a spell checker.
Al G. |
