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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (117314)	11/26/2000 6:38:27 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

<font color=teal>hope and then hope dashed..then hope and hope trashed TheStreet.com - Wrong! Darn the Hopeful and Hapless Weak Holders This market's fits and starts are giving false encouragement to players who should probably sit it out. By James J. Cramer Markets are getting thinner. It is taking an increasingly smaller amount of stock to move the market, even in some of the most liquid names. That's one of the reasons why we are getting these sudden lunges up and down. The buyers of the futures or the QQQs (Amex: QQQ - news) , those instruments that track the Nasdaq 100 , when coupled with buyers of the individual names, can ratchet up stocks unreasonably in an amazingly short period of time. (Of course the same can be said for the downside.) Increasingly I have noticed that these rallies get triggered by people who are short stocks or short indices and are trying to bring them in. The short-sellers come in and buy when it looks ugliest because that's when you get the best "fills" or executions. Because it is so tough to buy when others buy, the shorts try to be in early. To the untrained eye, it suddenly looks as if everything is OK. In fact, it makes it look as if things are going to rally, because a very little amount of stock goes an incredibly long way toward powering the market up or down right now. That short cover then triggers real buying, which then takes stocks beyond where they should be, bringing out real sellers who fear fundamental declines or multiple compression. And the cycle starts all over again. These fits and starts are all distinctly bearish patterns. If you are a bull at heart, as I am, you want to see a very different pattern, one where stocks go down and stay down over several weeks or even months. But this endless pattern of hope and then hope dashed and then hope and then hope trashed is causing people to lose much more money than they would if the darned thing would just go down and stay down. By keeping hope alive, we keep the weak holders in the game. That's who sells on any ramp up. Until the weak sellers are totally flushed out, I suspect that this pattern will remain in force for some time. What a bummer. See TheStreet.com's full site for more of its unique insider's perspective on Wall Street.