Why does the Dowdy Dow rally on every merger Monday...?
I mean most of these mergers are mistakes...and they only reflect the relative overvaluation of some stocks relative to others.
Perhaps the market wasa bit oversold on a technical basis...not on a macroeconomic level...
Or, to put it another way...the market masters need to "adjust" their inventories...
Remember... the "free float" that the market masters use to "made markets" is only those stocks in play on any one day....a very small number relatively speaking!
It is not the same as the number of shares outstanding...!
Of course the Suckers (the retail investors) think the "last share sold" price is the price they could get for their shares...but that's a myth...unless that person is only selling 100 shares.
It could be that the FED "rally " is being anticipated by the Street.
It's an old tradition to rally wildly on the day of a FED decision to "prove" that the FED still loves the Street's speculators... Don't know, maybe. But I'm convinced...!
Problem is everytime Wall Street lathers up...?
Sooner or later, someone drops the soap...!
