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Convinced stock market WILL NOT be allowed to breach 10,000

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posted on Feb, 2 2010 @ 02:50 AM
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And you have to understand the brokerage houses can sell stock they don't own. This is the carrot always out in front of the horse and cart.

The brokerage is always in position to sell at a higher asking price, dangling that carrot out there for the buyers.

The brokerage can always offer to sell higher and higher because they have 3 days to cover those short positions. In 3 days, if the stock price is still trending higher and higher, it doesn't matter, the brokerage can cover at a loss and then sell even more at a higher price. See? They can always come out with more cash or equal cash at the end of the trading day because they can always sell more and more. This is how the market moves get capped off at the top, because the amount offered for sale (or the endless bid hitting) will always put a stop to any price advance.

You can't think of selling as something that is done only with shares held. The leading selling is always done with shares borrowed. When there is a 15 minute pullback, the brokers cover and create the illusion of support under the market. The hope to pull in more 'real' buyers to keep the game going higher. Even if there are not many real buyers, active traders can fake it. Dude! It is scam city! But it makes the world go 'round. Transactions make the world go 'round.



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