AFTER-ELECTION RALLIES When any important election, either presidential or otherwise, takes place, and the forex market has pretty well discounted it, but the general public throughout the country figure that the event is favorable, they, of course, send in currency buying orders the next day after election and stocks are strong until this demand is satisfied. It will always pay you to wait two or three days after election and see whether the market continues to move in the same direction after election as it did before. Stocks were strong the first day after Wilson was elected the first time, but the decline started promptly after public forex buying orders had been filled. Always be careful of buying on top of after-election rallies. In the same way, if stocks open off and decline the first two or three days after election, be careful about selling them, as it may be only the public selling because they are scared and the insiders may support the market and start an advance. HOW STOCKS ARE SOLD When new companies are formed and capital is needed, the stock has to be sold to the public, and there is no difference in the method of selling stock and the method used by business men in selling their goods. A good business man advertises his goods and that is what the manipulators do. When they wish to distribute stocks and get them into the hands of the public, they use the newspapers in every way possible to advertise the stock. Their fluctuations are given wide publicity and everything possible is done to attract the public. Forex Conquered. High Probability Systems and Strategies for Active Traders - John L. Person It requires wide fluctuations and forex trading activity to entice the public to take a hand. They may pay very little attention to a stock selling around 40 when it is only fluctuating 5 or 6 points in three or four months, but when this same stock reaches 150 and begins to fluctuate 5 and 10 points each day, everybody talks about it. They see great opportunities for making big profits and begin to trade in it. The result is that the wide publicity and advertising induces the public to buy all the stock at a high price. Then the decline starts. They hold on and hope, and nothing much is said about it until the stock gets near the bottom, when all the bad news comes out and everybody talks about it. stock market quote ~ money magazine |