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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: HiSpeed who wrote (5674)	11/8/1998 9:31:00 AM
From: TraderAlan	Read Replies (2) of 12617

HiSpeed, You raise an interesting point. In the very short term, all that's required is there's a buyer for each seller. But where did those 3 points in DELL "materialize" from? The MMs didn't put it there. Participants were willing to take more money out of their pockets and exchange it for a "stock certificate". It's sort of like a chain letter. Those at the bottom of the chain make the money (like smart, early traders). But as soon as the last buyer buys (i.e. buying pressure ceases), the chain stops. Then anyone who wants out has to give up part of the price to do it, starting with the last buyer who paid the highest price. One place you see how this turn starts to "even the score" between winners and losers is volume peaking significantly right near tops as redistribution begins to accelerate. One of the scary things about the megabull (multi-year bull market) is many of the mutual fund holders that are making a paper profit right now will need to sell for their retirements at about the same time around 2011. Who are they going to sell to and at what price? Alan

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