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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: onurbius who wrote (49134)	3/14/2001 7:57:49 PM
From: velociraptor_	Read Replies (4) \| Respond to of 57584

Not necessarily....it's all about supply and demand and what people are willing to pay or sell for. It's not a zero sum game as they say. Let's say you have 100 people all willing to pay $10 for a stock for a total cash supply of $1000. The next day bad news comes out. Now lets say all 100 want out but you only have buyers at the $5 level and nothing above that. The 100 get out and collect $500 total cash Hmmm.....where did that other $500 go? The only thing that changes hands is the physical stock, not the same cash amount. Money can be lost and vaporize. The high volume at the Nazdaq peak at 5000 means that a ton of stock was bought at very high prices. Volume did not match the 500 peak until the Nazdaq broke below 3000 meaning there are a lot of poiitons underwater and a lot of vaporized cash. As for shorts with cash, shorting only amounts to maybe 10% at best of all trades. That's not going to cut it. Trust me....that money is GONE.