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[ThatHawaiiGuy]

Stock letter sort of:

Mutual Funds together make or break a market...that's why mutual fund cash is such an important indicator...if mutual funds don't have cash they can't buy and if they can't buy no rally can be sustained:

http://aolpf.marketwatch.com/source/blq/aolpf/archive/20001127/news/current/fidelity.asp

And if they sell heavily...individual investors do not power the market institutions do. The myth about the power of the individual investor is a cover for the machinations of the big fish...the article above talks about Fidelity...add the top 10 fund families (ranked by assests under management) and you get the picture...the number goes from 15% to over 50%.

Then add a little conspiracy theory...IE they conspire...IE they talk to each other even just a little...

Think about it...how many individual funds do those companies control...how many analysts follow those funds, how many analysts follow the individual sectors and then at last the stocks in those sectors...

Think about how much sentiment they can control in the market drowning out opposition and and facts to the contrary. This is a herd on Wall St. Doesn't have to be an evil conspiracy or even one that's coordinated by any mastermind or coven of masterminds...just be aware that it's there. And it ain't always right. This of course affords us little guys huge opportunities for gains but if we aren’t nimble makes us vulnerable to being run over or sucked out with the tide.

It took me about three months after the peak (way to slow) to figure out it was a shorter’s paradise. At election time when they couldn’t declare a winner I knew it was again one of those rare times when you could pick a stock with a blind fold and a dart and watch it sink in value on the NASDQ…with a little care you could find one that would really dive. Think about it if you play this game to the fullest extent times like Feb and March are great because you can go long on anything and make money, and times like this are great because you can go short and make good sums too.

I handicap myself because I don’t go short. Still managed to get some one day pops in due to a knowledge of market history, stock price history and dumb luck but the pro’s are quietly making money bull or bear.

You can either fight it and lose your ass or take the knowledge and use it to your advantage. If the game is rigged and you know it’s rigged and you even know how it’s rigged you’d be stupid to play by the old unrigged rules…but you could score with the new rigged rules…

Take VDOT. In 7 days they marched that up 300%…thru almost all the moving averages. Outside the bolinger bands….60 to 1.99 I say 300% because good luck selling that in any quantity over say 1.80 (but they would be happy to fill buys up there). Then they took it down to .90 or so. Is this fair? Is VDOT worth more than .90? Was there some MM action going on there? So what? There was a huge op to make money or increase shares. Bemoaning the vulgarities of it won’t put your kids thru college.

Find out how it works and use the knowledge to your advantage…

BTW right now PNLK is in the hole it’s up almost 50% since it dove down into the .40’s (low was .37 at bid)…problem is there is no volume to play with…ie hard to fill in or out.

There are plenty of bargains out there to accumulate if you have any cash…MDCE is down under .015 average down.

Plenty of big tech stocks for the picking…one or two years from now you’ll look brilliant. When they are selling you are buying when they are buying you are selling…

Do your own DD. Beware free advice posted on the net.