It really frustrates me reading some of the garbage on this page. It is obvious many of you do not have a clue how the market works. Here is a brief illustration that may help.
Lets start with a fictional stock, call it XYZ, and lets say today is the first day anyone has heard about it. (for the sake of simplicity)
The stock begins to move up on limited volume. A few eyes notice (smart money, institutional money, Market Maker money) and begin to passively bid for the stock. Day 2 shows much the same movement only now the volume begins to accelarate some as more eyes cath on. The first eyes on the stock are close to finishing their position, and begin to get a bit more aggressive about buyin to help the price of the stock they already own to push higher. On day 3 the smart money puts some kind of news out, be it buyout rumors upgrades, increase in earnings estimates WHAT EVER! The smart money pushes the bids up as far as they can PRE market, and all the people that have NO EDUCATION come to see the stock and start buying it. Guess whos shares they are buying!!! The stock promptly reverses course as the smart money sells to the dumb money, leaving them holding a losing position. 3 days of moderate selling, and the smart money decides to put out some NEGATIVE news, and you know what happens the price gaps DOWN, and you know who is selling their shares, the idiots that bought the top. Who is buying, the smart money that put the negative news out. And the game goes on and on forever.
Lawyers go to law school, Doctors to medical school. This game is by far more dificult then either of those professions. Get educated please.
The day of the crash is a perfect example. Every share sold was a share bought. What happened to the market the next day? Those who sold GOT SCREWED, the smart money was buying from the dumb money. Look at the September bottom, notice highest volume came at the low.
I am not saying that ALL institutions are smart money. I am saying that there are 2 camps, the educated, and the uneducated.