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


To: westes who wrote (51924)5/24/2000 9:29:00 AM
From: Gersh Avery  Respond to of 99985
 
OK ..

200 MA = what the majority of people have perceived the value of a stock has been over the last 200 days.

On average there has been more buyers than sellers below that line. That is if we are above that line.

The whole market is entirely the perception of the people willing to buy and sell. It's all, entirely, mass psychology.



To: westes who wrote (51924)5/24/2000 11:00:00 AM
From: The Phoenix  Read Replies (1) | Respond to of 99985
 
westes,

Been semi-lurking. What about the inflows. They are far greater than the number of company's valuations can reasonably take on. There is a supply and demand issue here. Like a housing market when there is more buyers than sellers. Homes in this environment sell for more than they are worth. So, given the influx of investor dollars why shouldn't this hold true in the market. I would expect PE's to be higher than they were historically. Yes, I know there have been many IPO's but clearly not enough to keep up with the demand. Now - as .com's fail there will be fewer companies accepting the same inflows.

Where did I go wrong??? Thanks in advance.

OG