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To: Arthur Tang who wrote (1154)7/6/2000 5:38:49 PM
From: Arthur Tang  Read Replies (1) | Respond to of 1471
 
It is interesting to note, that my father who has life long connections with Chase Bank, had long stated that when the business sector is good, all stocks will move up. When the business is in recession, only the good stock will not pull back much.

In the latest go around, the good stock is pretty firm, but those stocks without earnings took a dive. It was a very steep dive.

It has something to do with market maker psychology. If business is good, they have to be careful on nice moves, so they don't sell shorts too cheap. It will be hard to buy back. When companies are not solid, they can make nice moves, even if it is too high a flyer. When they fall, they fall hard and the shares shorted can be bought back easily.

God bless his soul, my father had the right perception. Investing is much easier, knowing the way.