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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?


To: Dean who wrote (4989)1/18/1999 8:08:00 PM
From: Trader J  Respond to of 56535
 
Dean: Float - Not necessarily but this is one of those issues that cold be debated for a long while as you are getting into the subject of psychology vs. supply/demand. I would lean towards the supply/demand model for determining which stock would have further to run based on good news or rumor. If the stock with a 5M float came out with a newsworthy event, there are 1/2 the shares available for purchase than that of the 10M float stock. This can cause any stock to soar. However, you could argue that the $5 stock with a 10M float is much more tradeable because of the psychological aspects of it being 1/2 the price of the $10 issue, it has further to run...potentially. Ulitmately it would come down to how many shares are for sale and how many buyers are there.

Like I said, I would still stick the the 5M and the supply/demand model for determining which would perform the best. Any differing opinions out there?

TJ