Sunday, February 19, 2012

Market Reality pt 3 - A CREATION STORY

 THEN  PRICES MUST REVERSE .

Think about WHY ? 


Only in Eternity could you find the Infinite.
In any "MOMENT" you will find only the FINITE.
The Extremely FINITE.

All Markets are basically ILLIQUID and Discontinuous. Explosions of activity.
That only last so long. MOMENT to MOMENT.

In any moment , Demand is always absorbing SUPPLY and SUPPLY is always absorbing demand.
Only in Eternity ==> BOTH may well be INFINITE.

But in any moment they are both limited and finite.
Not Everyone wants to or has to BUY and SELL , RIGHT NOW !
NOR CAN THEY.

ONLY those who for one reason or another TIME IS UP.
Price MUST FLUCTUATE


All things being equal :- ) .
The more the Urgent Demand , The Quicker We will have just SUPPLY
The more Urgent SUPPLY , The Quicker We will have JUST DEMAND.
In the MOMENT.
As long as life goes on !  Markets have a life . They Self Organize !

We have a Buyer who having bought before will become a seller after !
A seller who having sold  before will become a buyer after !
As well  =>
One of these will have had their DEMAND or SUPPLY -- MET !
One of these will still have SUPPLY or DEMAND to be MET !

Prices will rise as long as Buyers are more Urgent ( time presses on them )
 We will have a Wave of Buying that has the effect of moving price UP
( Demand Overcoming SUPPLY )


But also has the effect of satiating those Buyers. In the "Moment" Exhausting those Buying .
Moving Price Out of the reach of the contingent DEMAND ( EMPTY SPACES )
and Into the reach of Contingent SUPPLY.

All stock market movements, however large or small, are made up of
buying and selling waves. 
These have a certain duration; they run just so long as they
can attract a following. When this following is exhausted for the time being, that
wave comes to an end and a contrary wave sets in. The latter may attract more of
a following than the former.




"These figures denote the widening character of a move as it progresses and are intended to show how volume, activity and number of transactions expand until, at the end......the following is exhausted"
( note the modification )

Exhaustion = Satiated 

Our columns will rise as long as there are buyers who are more urgent in the moment !
Their own urgency Exhausts them.

NOTE==> There only has to be an excess in that moment. Not an Absolute Excess

So out of an the empty space of contingent possibility.

Demand and Supply Meet. But in an unbalanced way !
Each in turn Exhausting and Satiating  each other IN THE MOMENT.
At the top of an UP column.
Supply will overcome demand ( it has to )
and At the bottom of a down column Demand will over come Supply (it has to )

The Demand in that moment has to become future SUPPLY
The Supply in that moment can only become future DEMAND.

Price by moving UP arrives where contingent supply is waiting.
When the Buying Wave comes to an end 
That Supply has to  auction down into the momentary lack of Demand.

DEMAND creates SUPPLY
SUPPLY creates DEMAND

But not at the same Price
Not for the same contingency.

And this points to the way ahead .


Motorway









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