JP,
>>> You have an asset,
There is supply and demand.
if supply is greater than demand the price will fall.
If demand is greater than supply then the price will rise.<<<
I used to think like that, and in a lot of cases, it still probably holds true, but in this current market, I think that it has more to do with 'feeling' than 'supply' and 'demand'. When I place a 'Market' order, without 'limits', it is executed within about 10 seconds. Now I make the 'order' based on my 'feeling' on how the stock will perform in my portfolio. The reason that I don't use 'limits' or 'stops' is because in my 'little pea brain', I think that somehow somebody is watching what is in those 'buy' and 'sell' queues, and somehow 'they' work those 'queued' orders to 'their' benefit. NOT MINE. So I surprise 'em with the 'ole Market order! Now that order will be executed whether it is an 'up tick' or 'down tick', but in either case, I have bought of sold in a matter of a few seconds.
My point is that THERE was a SELLER (if I was Buying) and THERE was a BUYER (if I was Selling).
You would always find a seller if you were willing to buy for twice the current price, and you would always find a buyer if you were willing to sell for half the current price!
As for the -
>>> We could talk about the number of large blocks limits arbatrage, and all kinds of other stuff that can impact the price of the stock.
But for july 7, there was more supply and that sent the stock down.
Today, it seems that supply is lower than demand and that has driven the price up. <<<
I'm not sure that some were not 'profit taking' on the 7th, and on the 8th, some were setting their 'portfolios' for the next cycle.
With E-Trade and Day Trading, I think that some of the old 'suppky' and 'demand' theory just doesn't hold anymore. JMHO
Regards,
Ken
OT - PS - How's the baby? |
