Similarly, one of the most discouraging
things to emerge in the market is when a stock, or a group, reacts poorly to good news; this
tends to indicate that the good news is already priced into the stock, and there aren't any
buyers left to take the stock higher.
The interesting
thing is that the negative reaction in the market
tends to be a little less when inventory is very tight, but as soon as inventory becomes normal, these adverse locations
tend to be a bigger deal for
buyers.