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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (45209)	11/9/2005 11:54:05 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

I think they do provide "structural support" Perhaps it is in conjuction with other hedge fund activities that buy the dip. Delta hedge shorting increases as stock decline then at some point dip buyer come in. All of that delta hedging covers and mo-mo player pile in on top of it all. It works until it doesnt. But it has been working for one hell of a long time. There is a natural tendency it seems for ANY uptick to be piled into even intraday. It is a very tough climate for those wanting to short. Buys at support seem to be working better (after a headfake thru) than shorting at resistance. This works until it doesnt. The question is, when will it stop working. Mish