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Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (1772)	6/4/2002 2:26:34 PM
From: GraceZ	Respond to of 17639

Supply gets sucked up and that makes the market subject to small changes in marginal demand, its those marginal shares that determine price. You get to a technical point where more selling doesn't produce price concession so shorts decide to take their profit and move on. Still, you are right, it needs a catalyst to get it going. A small change, an all clear signal that it's OK to own stocks again (perhaps the long awaited successful test of the Sept lows). Perhaps its a better than expected earnings report or the Fed raises rates to ease inflation fears telling people we're doing better than what they think (its a bizzaro world- normally raising rates kills the market). I think the rally on May 8 was just a taste of what a major short squeeze would look like. A gap that would blow right past everyone's buy stops.