What I don't understend, is in this current climate, who is profitting?
OK, people go short. Not something I have really worked out yet - hell, at the moment I doubt my ability to go long!! (That will come in another post I am planning!). However, from what I understand, they cannot go shrt forever, so they will have to buy eventually. Some profit - yes, but not enough to give what really has been a crash (The Naz down 62% in 12 months - if thats not a crash, I am not sure what is!)
Ok - the institutions? Well, by sitting out, they are biding their time. However volume is not so reduced that their presence is missed. And they must also be sitting on losses too - not good for profits....
MM's. Well, they must be having a field day. However, Surely they work best on medium term cycles, accumulating stock on the cheap, and selling it back for more money - although they have to do it unpredictably, otherwise we would beat them at their own game. Some truth, yes, but surely they need a rally simply to stimulate interest, trade, and their profits. Surely for some equities, they must be sitting on a glut of stock that they just want to sell!
Who else is profitting from these conditions? Surely someone is, as money does not disappear, it simply streams ike a river. Who is the big player, and who is doing the manipulating? For knowing your enemy is the key to battle. I know we blame the MM's, but are they not simply the equivalent of the message boys, carrying the sentiment? Or am I being to generous.
Just who is making the lolly?
It most certainly isn't I!
Mark
OK, people go short. Not something I have really worked out yet - hell, at the moment I doubt my ability to go long!! (That will come in another post I am planning!). However, from what I understand, they cannot go shrt forever, so they will have to buy eventually. Some profit - yes, but not enough to give what really has been a crash (The Naz down 62% in 12 months - if thats not a crash, I am not sure what is!)
Ok - the institutions? Well, by sitting out, they are biding their time. However volume is not so reduced that their presence is missed. And they must also be sitting on losses too - not good for profits....
MM's. Well, they must be having a field day. However, Surely they work best on medium term cycles, accumulating stock on the cheap, and selling it back for more money - although they have to do it unpredictably, otherwise we would beat them at their own game. Some truth, yes, but surely they need a rally simply to stimulate interest, trade, and their profits. Surely for some equities, they must be sitting on a glut of stock that they just want to sell!
Who else is profitting from these conditions? Surely someone is, as money does not disappear, it simply streams ike a river. Who is the big player, and who is doing the manipulating? For knowing your enemy is the key to battle. I know we blame the MM's, but are they not simply the equivalent of the message boys, carrying the sentiment? Or am I being to generous.
Just who is making the lolly?
It most certainly isn't I!
Mark
