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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: samim anbarcioglu who wrote (88667)	6/30/2002 7:00:13 PM
From: lifeisgood	Read Replies (1) \| Respond to of 99280

There are plenty of sources on the web (this is a great primer trendvue.com that spell this out more adequately but the low down boils down to the two psychological drivers of short- and intermediate-term moves in the market. Fear and greed. When everyone (I will use the term "everyone" loosely for arguments sake) is bullish, they have presumably already invested their available money. Who then has money to drive stocks higher? No one. When greed and "I have to go on margin so I don't miss the next money train" mentality pervade, they must be purged from the system both to create more available money (as this "dumb money" will usually capitulate and sell at the bottom) and to create prices at which stocks again become values. I know this isn't a very good explanation but please don't stop looking for answers to your question... it will separate you from the majority of investors, most of whom have seen their investments evaporate over the past 2 years. Another thing to keep in mind is that, because greed and fear are timeless human attributes, this is the way the market has always been (notwithstanding the argument that "this time could be different"). best... LIG