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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (77859)	5/20/2007 12:35:54 PM
From: GraceZ	Read Replies (2) \| Respond to of 306849

The unspoken assumption here is that the market is rising on long buying. The market moves in the direction of the book (both orders that are entered as limit orders to buy and sell and those mental stop loss and profit saving orders not yet entered). In a Bull market longs tend to book below, below to buy a little cheaper to take advantage of an advance and with stop loss sell orders below to protect gains. This can cause serious steep drops in price if the book above gets thin. It's short sellers who book to buy and sell above. Top guessing short sellers with tight stop losses can drive a market far beyond it's fundamental value. They load the book above.