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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?


To: bobkansas who wrote (19572)1/27/2000 4:44:00 PM
From: Rande Is  Respond to of 57584
 
It is an interesting theory. . . and certainly believable. . . time will tell. . . but that is not what we have been seeing in January. . . but rather extraordinary volatility, volume and wash & rinse.

Rapid turnover yields diminishing results. Brokerage houses love rapid turnover. . . in every way. But it is not just the individuals against the brokerages. . . the fund managers must buy too. . . and this week we saw some stocks get huge injections of cash. . .most likely from fund managers entering. . . . and they must continue buying the stocks they choose. . . as their sales staff signs up more investors. . ., etc. . . then there is institutional/corporate investing. . . hedge funds. . .foreign investors. . .

Yes the brokerage houses have proven they CAN manipulate any time they wish. But the individuals have also proven that they can buck the trend and win. And that is why I believe we have seen so much volatility. . . they wash and rinse because they can.

I would hope there is not a slow bear in our future. . .that would be dreadful. I don't see volume slowing, which is the main indicator of such. So I would have to disagree with the theory at this time. If we see a dramatic drop in volume next week, accompanied by drifting stock prices, then I would say yes, that might be the case.

Hope that helps,

Rande Is