> The stock market is jumpy, period. Every day analysts try to pin the
> net total of all world trading onto a single cause.
My own pet theory is that the degree of overvaluation drives the
instabilities:
100% value - market goes up, steadily
110% value - market goes up, about 0.2% daily variation
115% value - market goes up in about 0.2% vars, drops about 0.6%
about 1 day in 5.
120% value - market goes up in about 0.5% vars, drops about 1.5%
about 1 day in 3
125% value - jiggles about 1.5% daily, eventual 3% - 4% drop over a
week or so eventually.
IMHO these are mostly due to the trading sofware settings....
At the moment we are in the 110% - 115% range..
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| Hara Ra <harara@shamanics.com> |
| Box 8334 Santa Cruz, CA 95061 |
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