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milkman2

05/22/12 1:56 AM

#5626 RE: Ripdog7570 #5619

The purpose of the dip(s) is to weed out people with set stop loses, those that loaded up the wagon early and keep people scared. Otherwise, if it is one green run from bottom to top everybody loads up on day one and holds to the end, and then this game wouldn't work. They need to shake the tree and get rid of weak hands, scare people, to ensure continuation. If shorts are available it also sets up a short squeeze because they (MMs) rip the bid back up so the shorts are covering: buying back their shares at higher prices minimizing (potential) losses.

Nobody knows when these dips occur, except for the MMs/promoters, either you buy them if you are quick and trade intra day or you ignore them if your trading time line is set in days/weeks. All depends.