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

To: Road Walker who wrote (51269)	5/19/2000 1:41:00 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 99985

re: I wonder when (at least temporarily) we will run out of sellers, I'm guessing that, rather than running out of sellers, the bottom will be when the supply of buyers increases, to equal the continuing high level of sellers. The supply of sellers will continue, because there are still a lot of momentum guessers who haven't given up. There is still a lot of de-leveraging that needs to happen. Everyone on margin at higher prices, everyone who took out a 125% home equity loan to buy out-of-the-money Ebay calls, all the "smart money" in LTCM-style funds. On the other hand, there is a huge amount of money on the sidelines. Everyone is conditioned to buy-the-dip. Everyone is still convinced that stocks are the place to be longterm, and tech stocks are where the growth is. Sooner or later, prices will reach a point where that money flows back into stocks. The interesting question is, where is that point? I think volume will tell us.