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Exactly, there is way more.
And way more , than even a $40,000,000 SEC fine, on TSLA. Many funds were selling @ about the worst time time in 2008- because they had to, not because they wanted to.Panic sellers never win, just like Art Cashin said.
Does selling make the price go down?
- Thread starter noddyboy
- Start date
Exactly, there is way more.
And way more , than even a $40,000,000 SEC fine, on TSLA. Many funds were selling @ about the worst time time in 2008- because they had to, not because they wanted to.Panic sellers never win, just like Art Cashin said.
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HUH??/ SPY went down last week, red weekly candle bar. JULY could easy close down/red even in a superstong year like 2019.
, [Edit note when SPY closes down, don't worry about all the WSJ ……. BS on fund flows] Besides Fidelity Contrafund as a huge line of credit-they may or may not use it]Usa fund flows negative since 2015. But overnight gap up keeps the rally going. So what is the mechanism? Is there buying or just robo repricing? Don't tell me it is Millennial buying. There is no one left other than passive funds and quants.
https://static.seekingalpha.com/upl...mestic_2Bequity_2Band_2Boverseas_2Bequity.png
https://static.seekingalpha.com/upl...mestic_2Bequity_2Band_2Boverseas_2Bequity.png
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HUH??/ SPY went down last week, red weekly candle bar. JULY could easy close down/red even in a superstong year like 2019.
Persistant pattern...………………………………………………………………………………………..
https://www.wsj.com/articles/fed-co...r-leadership-yellen-says-1475179202?mod=rsswn
Federal Reserve Chairwoman Janet Yellen said Thursday there could be benefits to allowing the central bank to buy stocks as a way to boost the economy in a downturn.
Speaking to a minority bankers’ conference at the Kansas City Fed via videoconference, Ms. Yellen said stock-buying could be a tool for policy makers in the future.
“There could be benefits to the ability to buy either equities or corporate bonds,” she said in reply to a question from the audience. “There would also be costs as well that would have to be carefully considered in deciding whether that would be a good idea.”
Fed through offshore entities buy Index futures, sometimes Indexes themselves through NY Fed's desk in coordination with biggest Wall Street banks... In theory it's not logged, so although on paper it appears that their are much more outflows then inflows, in reality Fed is helping the markets, which is great... Especially on a rebound
Euro, India, china, Japan and Australia Central Bankers are notorious for buying up their Indexes... All those economies are heading down the toilet in a fury, yet equities are flying in those countries, sometimes you see steep declines then a massive bid comes in and pushes main Index up half a percent in 20-30 minutes, I have watched the Shanghai Index go from minus 1 percent and change to positive in less then a hour. People don't seem to understand stocks is only 1's and 0's, it can vanish extremely quick in share price if there isn't bids you can control new price by bidding uber low, so in Bear markets CB's have to constantly intervene, and HFT Front running the massive buys creates a " growth " illusion, that can all disappear quick the moment there isn't bids.
Ill give a quick example on a short I did last year, in next post on this matter so you understand the illusion of liquidity
this is setting up to be a massive melting up due to the lack of supply.... as the dumb money gets flatter and flatter in equities and the chips get collected by the smart money.
Ticker IMH, Impac Mortgage Holdings, I loaded up on puts in anticipation for deterioration in Q3 2019 results, they posted results after hours on November 7th going off memory, they had 120 Million or so in Market Cap... Illiquid company, trade value daily is low but I was convinced I would make out like a bandit, although I didn't understand at the time why some people stressed about liquidity issues on share prices... Earnings come in, 2nd disaster quarter in a row, their trend is sealed, they are going bankrupt, insider selling showed main owner Richard H Pickup dump shares at 4.75 $, last time shares were more then 4.75 in 2018 was Nov 7, indicating he dumped on Nov 8 when the shares lost 17.82 % of value, I still remember that trading moment vividly, in happiness I guess when I laid my eyes on that huge red number, although I didn't know until few days later it was Majority Owner.
IMH had a Market Cap of 120 Million or so at the time, and in one day lost 17.82 % of it's share price... So one would assume that millions in selling destroyed that amount of market cap but something weird caught me off guard when I analyzed it by day's end and further days after, on November 8th the day it lost 17.82 % of it's value, the trading value was only 148826 US... 148K US worth of shares were traded that day, yet it's share lost 17.82 % and market cap lost 20 million or so. I learned at the moment, it doesn't matter what Market Cap or anything indicates, if there isn't bids, those illusion numbers vanish in thin air, like you are seeing in corporate bonds right now. That's why when you hear 5 Trillion worth of value destroyed in a month, actual profit taking was likely few hundreds of billions at most, yet it destroyed 5 Trillion worth of equities... Algo's and HFT created a very dangerous game
the way down is extremely dangerous for stability
IMH had a Market Cap of 120 Million or so at the time, and in one day lost 17.82 % of it's share price... So one would assume that millions in selling destroyed that amount of market cap but something weird caught me off guard when I analyzed it by day's end and further days after, on November 8th the day it lost 17.82 % of it's value, the trading value was only 148826 US... 148K US worth of shares were traded that day, yet it's share lost 17.82 % and market cap lost 20 million or so. I learned at the moment, it doesn't matter what Market Cap or anything indicates, if there isn't bids, those illusion numbers vanish in thin air, like you are seeing in corporate bonds right now. That's why when you hear 5 Trillion worth of value destroyed in a month, actual profit taking was likely few hundreds of billions at most, yet it destroyed 5 Trillion worth of equities... Algo's and HFT created a very dangerous game
That is what I am thinking too. There is selling as people redeem from funds. We know this from the numbers. But if everyone agrees to raise the bids nightly, the price can keep going up without any volume and the market keeps rising. Also all indices are market cap weighted so it doesn't even have to be all stocks. Just the ones that count.
Good morning down there in hot sunny Boca Raton.
So what causes a drop in prices. Lack of demand so price goes down to where buyers are willing to buy OR LACK supply as inventories are drained OR lack of supply because sellers are backing off their offers therefore, buyers have to bid more if they want what is being sold?