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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (19840)	4/30/2005 8:40:04 AM
From: dvdw©	Respond to of 207300

Chief said :"they is spending a fortune trying to get it filled." Me thinks most people dont realize that there are costs associated with engineering chart outcomes. For those of us who do watch Trees and not the forest we see this everyday. The manner and methods of throwing trade after trade of meaningless volume to steer price bears a cost to the programs so engaged. April is not only Tax season its also a time when you'll see between 3 & 4 % net change in fund ownership via rotation. ie if annual rotations hover around 7% we are very used to seeing about half of that occurr during this period. Market systems advantage their course by not characcterizing this added volatility, there fore most assume the added liquidity is more than it actually is. Supply remains tighter than ever. The net short interest continues to build against a backdrop of decreasing supply. Every day companies of all sizes are announcing buy backs, me thinks this is out of frustration with the markets tone and a sneaky understanding that inter connected market systems not related to company or industry performance are setting the trend. These trend maintenance programs might be rooted in facilitating M&A activity later this summer, a large portion of the short interest in certain securities is positioned for this. Cap and control programs to lower market caps benefit Buyers and their intermediaries in several obvious ways. Investors must be cognizant of trend activity in the market identifying them for what they are, in many cases the goals is to acquire assets. M&A outcomes are arrived at only after protracted cap and control programs have had their desired effects, by ratcheting down market cap, these systems facilitate paying far less for the perceived values than what they would pay under different trend states when market tone is reversed.