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Dog-faced pony soldier
Join Date: Feb 2004
Location: A Rock Surrounded by a Whole lot of Water
Posts: 34,187
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The speculators get excited and think the price might go up, so they buy... expecting to be able to sell tomorrow at a higher price. Their buying drives up the price (self-fulfilling prophecy effect due to others seeing the buy orders and thinking demand is going up so THEY need to buy before the price adjusts tO reflect the new demand, etc.)
Pretty straightforward, predictable market behavior for an event like this. Profiteering and conspiracy has little if anything to do with it...
The big question is whether to go long now (in anticipation of further climbs or go short, betting that this works out and that the run-up has already been realized and is priced into the market...
I'm thinking play the downside but how down... And when? A week? A month?
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