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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (24652)	12/29/1999 9:15:00 AM
From: j g cordes	Read Replies (1) \| Respond to of 69853

My perspective on the rising ball of stock prices. Key phrase from your post Stephan ".. and that maybe things have somehow changed." Don't go there. Its important to occasionally remind oneself of how a market is constructed. Price is bid up and down.. Here's a good mental image. Think of price as a ball being pushed aloft by a stream from a hose (buying pressure). The ball stays aloft because the well pump (private investors) or public services (the mutual funds) are shoving money into that hose nozzle. The faster they pump it in the higher the ball goes. If the stock splits, its just a bigger ball to keep aloft. Now here's the tricky part. If the ball looks vulnerable, other players appear with hoses who will cruise overhead in blimps and use a water cannon to knock the ball down. They will dump on it from the top and even try to shoot out the money flow stream supporting it from the bottom. The only thing that's "changed" is that with light speed electronic access to markets, the process can happen a lot faster than in the past and from directions which we just can't see until they are happening.. Jim