Supply Hitting The Market

During the latest week we have seen a number of IPOs and secondary offerings. A large new supply of stock in the market is a negative. There is reason to believe that we will be seeing more supply in the months ahead. The following quote is from a banker quoted in yesterday's Wall Street Journal speaking about new offerings:
"As far as pipelines go, everyone is busier than they have ever been. ... I personally have been on 30 pitches over the last 10 days, which is very busy."
This is another headwind for a market that is starting to look shaky. Have a great weekend.


Anonymous said...

Mate, We understood market is still in uptrend. But we do have short term counter trends but I always trade only primary trend. I would like to know your opinion on trading short term trends. Is it good practice or not. please share your comments

Anonymous said...


Tsachy Mishal said...

Every trader has a different style. I have had a lot of success playing counter trend moves. Especially, in bear markets. I am good at identifying bouts of fear and panic, which usually lead to sharp rallies in bear markets. Its harder to identify counter trend moves in bull markets.

Chaos! said...

FYI. Found this on the Minyanville site:

MIDDLETOWN, Pa. (AP) - A small amount of radiation has been detected in a reactor building at the Three Mile Island nuclear power plant in central Pennsylvania. Officials say there is no public health risk.

About 150 employees were sent home after the radiation was detected Saturday afternoon.

Exelon Nuclear spokeswoman Beth Archer says investigators are searching for the cause. She says the radiation was quickly contained.

Be careful

Tsachy Mishal said...

Thanks for bringing it to my attention. The words nuclear and Three Mile Island are pretty scary but its probably nothing.