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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (41541)	2/27/2000 12:14:00 PM
From: HairBall	Respond to of 99985

dmp: If you don't believe market manipulation takes place...click past this post, don't waste your time reading it! I don't have my charts up so I am going to do this from memory so forgive me if I err a little making my point. Look at the COMP it topped out in May of last year. The Dow topped out in Jan of this year. When you have a "very large" position and you want to sell off a good portion how do you motivate folks to buy? You induce a rally. The continued rise in price draws investors into the stocks to be distributed. The holder of the large position sells into this demand. These folks don't try to sell at the exact top or buy at the exact bottom, close is very profitable, trust me! Sometimes it is done months in advance...really! I don't have the time today to go into this subject completely, but there are many techniques by which distribution and accumulation takes place and it is often discernable. Some techniques are much harder than others to catch...sometimes you just can't catch it! In Dec92/Jan93 and at additional points in 93 I noticed accumulation in IBM. I tried to tell some of the folks I was acquainted with at the time to buy IBM. I even posted charts at my place of business pointing it out and saying IBM is bottoming. I don't think one single person listened to me. IBM begin to move in late 93 well ahead of the overall market bull run that began lift off Dec 94 as measured by the INDU. The clues are there, but they aren't always easy to spot. And then sometimes like I said...they are in your face. IBM was very good to me...look at the chart! When it comes to this accumulation/distribution theory, you got to think like a criminal...really! They want your money, but they really do not want you to catch on, so they leave some on the table! It really is that simple... Regards, LG