Tuesday, January 22, 2008

Supply and Demand

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Strong decline and strong recovery.

Today we had very scary opening, but very nice recovery. The fact that S&P 500 and DJI recovered almost 2.5% is promising. The NASDAQ 100 recovered almost 3% from the bottom. It was very sharp recovery. Already in the first15 minutes of trading the NASDAQ 100 already gained 2.5% back. I may assume that such strong rally up was caused by the fact that we had today more buyers then sellers and those who was buying was ready to pay higher price. It looks like a lot of traders decided to buy at low, at least their demand was stronger then supply of those who still in panic tried to sell. There could be a possibility that we may see the shift in the supply/demands balance and today could be marked as beginning of the reversal. Yet, it could be too early to talk about reversal when the market is still to close to the lows. Even if this is the beginning of the up-trend we still may see very volatile market…

My mid-term is very optimistic…

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