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Re: Paul Wall post# 8584

Saturday, 07/09/2011 1:23:14 AM

Saturday, July 09, 2011 1:23:14 AM

Post# of 32960
The buy sell ratio really means nothing, stocks move up or down based on supply and demand. More demand equals up and more supply equals down. Look at yesterday's B/S ratio, buys far out numbered sells but the stock went down, same with Wednesday. Here's what happened yesterday; VFIN sat on the ask and dumped millions of shares at 1 cent even. Each share dumped or sold at .01 was listed as a buy, not a sell. The supply far out-stripped demand yet those shares were listed as buys. Why, because the shares sold at the ask, not the bid. If you wanted out you had to jump in front of VIFN and under cut them and sell for less than .01 or slap the bid.

On a normal trading day when the stock is going up, demand out-strips supply and the stock is bought mostly at the ask therefore, the B/S ratio will indicate more buys than sells.

Some days, a stock can be strong early, where buys out number sells quite a bit and then all of a sudden buyers leave and the stock starts trading down on light volume and ends either flat or down but buys far out number sells on iHubs website.

Bottom line, the buy/sell ratio as seen on iHubs website means absolutely nothing. It's all in how great the supply versus demand for the stock is shaping up. It takes more volume (usually) to move a stock up than it takes to move a stock down. There will always be shorts and normal selling where at times there are no buyers to be found. Hence, a big sell off.