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To: Arthur Tang who wrote (1235)2/23/2001 4:23:57 AM
From: Arthur Tang  Read Replies (1) | Respond to of 1471
 
Why Monday ebb and flow starts with a pull back about 11 am.?

Funds receive cash daily around 11 am.; but due to lack of cash flow(subcriptions), and the pressure of meeting payroll, they(always fully invested) have to liquidate some stocks. With clearing done in two days; cash has to be on hand Wednesday or Thursday for Friday payroll. Funds often has to be top performer to receive much cash.

Brokers can short stock and buy back on the same day without putting up anything(naked). Stockholders can short also. But most of the others had to wait for the market trend to change Wednesday for the nice moves bouncing back to long the stocks(one out of two cycles isn't too bad).