With Ying Li breaking out higher and running further, the 300 lots accumulated on Oct 5th last week was showing signs of a good swing trade. Unfortunately for the economy, so many Americans invested money in the stock market that stocks became inflated in price. Now that we are nearing the end of the year, prognosticators will be all over the airwaves talking about their stock market prediction. As a rule, after a huge amount of money is taken out of the market (when SBV declines) we see a rebound (investors start to invest again).
That kind of panic selling tends to feed upon itself, sending the market spiraling lower for an extended period of time. Brokers in the 1920s were allowing their investors to borrow on average of up to 66{606b15cb8282e5ec3580d0e72c193589ece6551be175750a8e347f0d91362e12} on margin , and this was an unprecedented amount of margin that the market ever experienced. See period …