Forum Archive Index - June 2000

[jesse <johne777@hotmail.com>]

Hi Warner
apart from squeezing shorts (shouldnt be allowed in a public place) as
in the article you posted,  the market  makers also fake a late day
rally to get buyers to come into the market early next morning, buying
their favourites on what appears to be strength. Then they dump them
soon after the open. Thats why the first hour of trading is known as
amateur hour and  most traders wait it out to see the 'real' trend.
Interesting to read about how people see volumes way down on the Nasdaq.
April was 50% up on April '99 and May 67% up on same time last year.
It's only when you compare it with record volumes in Feb and March that
it is well off the highs, but growing steadily year on year.
It's kinda like the investors who bought on Friday. The unemployment
rate was 4.1%, same as 3 months ago when it was regarded as
inflationary. Now 4.1% is seen as good because it's higher than the
record low of 3.9% last month.
So it seems good and bad can change very quickly, you just comapre them
with a different set of stats. The physcology of the market.....work it
out and your rich.
Like....how come the Nasdaq is higher now than it was before the 50
point rate hike? It's like saying, thankyou Mr G for putting up rates,
now lets buy shares. However, if you threaten to raise again, we sell.
However, once you do raise, we buy again.
Conclusion......perception is worse than reality.
my old psychology professor would love me
j


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