Some Good Theories on Stock Pullbacks..

Discussion in 'Trading' started by BNB Analytics, Sep 12, 2007.

  1. Hi, I've always wondered why pullbacks occur.. Do the bears just one day feel like trying to scare out the bulls before that rally usually sets in?

    I would like some ET user theories on why you think pullbacks in any asset occur. To me it still looks as if it is a phenemenon, but if you guys have some good rational to why it happens, maybe I'll take that on as a new belief.

  2. Are you serious or is this a windup?

    In case its not a windup (which I think it is!!) the markets moves in waves and within these waves are pull backs. Unless you expect stocks to go from 1 to 100 and vice versa that is
  3. What I'm trying to find out is WHO controls these pullbacks. I mean, do a group of sellers just say "hey let's make the market move down for a bit until the bulls pick us back up?"
  4. One day; Banks tell the borrowers: "hey; your paper worth shit; we are just re-evaluate your loans for seconds; maybe days; see what happen."

    Borrowers say to bankers: "Ok; my books are clean;...... wait......just after we dumping some of these bad assets to some foreigner first."

    Banks: "your idiots; who want to load up these shit at the first place?"

    Borrowers: "YOU!"
  5. When the holders sell the stock others short the stock. The stock goes down.

    Never been good at shorting though.
  6. lindq


    Stocks pullback for many reasons.

    - Traders/investors take profits after a runup, or in anticipation of bad news.

    - News or rumors, true or false.

    - Movement in the overall market can exacerbate a pullback

    - Major holders selling out large positions

    - Fear and panic. Selling leads to capitulation selling. (A good buy signal)

    One man's sell is another man's buy. So you'll always have movement on both sides. That's what makes a market.
  7. I like what I'm hearing sofar.. I think this puts these pullbacks I see into more clarity.. Sometimes they could appear to the untrained eye as random but I believe they are far from random.
  8. WHO? Helluva band.

    WHO opens the stock?

    WHO makes the spread?

    WHO sees the orders coming?

    WHO's exempt from Reg's T and U?

    WHO, in theory maintains a "fair and orderly market"?

    WHO do institutions consult with toward entering or exiting in blocks.

    In other words, WHO is most married to the stock, day in and day out, perpetually?
  9. lindq


    No. WHAT makes the spread.

    WHO fills the order.
  10. WHO is on first...
    #10     Sep 12, 2007