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Strategies & Market Trends : Waiting for the big Kahuna

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To: James F. Hopkins who wrote (22799)7/30/1998 11:43:00 PM
From: Bonnie Bear  Read Replies (1) of 94695
 
Jim: I'm guilty of panic selling some smallcap stuff last April- they dropped so precipitously I thought they were going under- they then proceeded to go up 150% without me in a matter of weeks. It seemed that the gap up in interest rates was used to sell off enough shares from dummies like me to make them available to the big guys.
The thing I see consistently is that small players are randomly dumping shares at the bottom of the trading range, and after several trading days someone comes in and gathers up a few thousand shares at the bottom of the trading range, all at once- the big guys can't get enough shares to make a smallcap worthwhile without a long bear market and lots of volatility to shake out small investors. I also see there's not much volume except for a nifty fifty in the smallcaps.
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