Yesterday's strange market Tsunami was unpredicted and it's size was surprising. After all, 200 point rallies don't usually come out of nowhere. As any ship's captain will tell you....
Yes. The market was "over-sold" and all that technical stuff.
But now the futures are down this morning....so, a little temporary insanity probably can't save this market from it's ultimate fate.
The only explanation for yesterday was that every so often the "free float" becomes so concentrated in accounts of the market makers....that then they can force a spike in prices by holding the float off the market for a while.
Remember, ALL STOCKS of a company are NOT IN PLAY on any given market day...and ONLY those stocks that are in play set the prices....
Not the stock you have in your sock drawer! That doesn't count.... Until you decide to put it "in play." But, when you do....alas, the market falls!
In short, IT'S ALL ABOUT THE FREE FLOAT. And the market makers....
NOT THE SO CALLED "PRICE OF STOCKS"
......WHICH IS MOSTLY A FICTION REALLY.
AS MANY INVESTORS SADDLY FIND OUT WHEN THEY TRY TO SELL!
