What do the "Big Boys" short, how do they "signal between themselves" that they need to pull out of the market for a bit? Do they have their computers tied to a program for this? Is it geared to key words in some news service on words like "subprime" and "inflation" being mentioned so many times in a given time period by certain people?
2007-03-22 01:55:32 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
I have read recently one thing that has a negative correlation to stock price movement is 'non member short sales'. If the number on this goes up we can expect the price of stock to go up and vice versa. So when the non members feel the market is going to go down then they are wrong most of the time and the market will move up. Put/call ratio and advance/decline ratio are leading and coincident indicators of the direction of the market.
2007-03-22 07:39:55 · answer #1 · answered by Mathew C 5 · 0⤊ 0⤋
you have to look for certain indicators...like is the market is gaining a lot of points in very few days...it may see a downturn soon..or if there is a disaster,some political problems in the country etc etc...the market may see a downturn......i'm no expert but i have seen these points myself!!
2007-03-22 09:05:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋