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Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (40469)	12/6/2024 12:18:37 PM
From: skinowski	Read Replies (1) \| Respond to of 41461

As I recall from reading over the years, near the top of a big rally, the market makers are out of inventory - AND - in order to fulfill their function of being a seller to every buyer - are forced to sell equities short. Which causes the blow-off, as they want to minimize their risk by getting top prices. After the buying is done, it is in their interest to gap down - or simply bring prices down as fast as possible - as they buy back their short positions and re-accumulate inventory. This happens to some extent in every time frame. Part of the game.