:marseyaware:

https://x.com/IterIntellectus/status/1861174062887903475

								

								
90
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Hits new high, loses 50% of it's value, hits new high, loses 50% of it's value. It's trending up but in r-slurred fashion. I'm surprised most people are surprised by this still.

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Stocks also act irrational around big milestone numbers (100K in this case). There's an analogous situation with vending machine prices. If a bottle of soda goes from $1.85 to $1.95 nobody really cares, but when it goes to $2.05 it suddenly pisses people off because it's crossed an imaginary line in their head. With stocks, if they're actually to pass the milestone, they'll probably hover around it for several days first, continually fluctuating until it finally gets far enough ahead that the irrationality isn't affecting it anymore.

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I'm fascinated by this effect because I feel like I've been noticing it so much more (probably just personal bias), specifically SPY banging its head against 600 for a while and Amazon dancing around 200, despite the fact the actual market cap associated at those price levels is just some random capitalization value.

5 years ago I would have seen round share prices as support/resistance but since I've learned to ignore it, my return has been exponentially better. And I do mean exponential lol

https://i.rdrama.net/images/17325923180373266.webp

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Is it because of dividend payments perhaps?

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Maybe a bit but that wouldn't explain Amazon and other non dividend stocks. Seems more like a collective behavior of setting round prices for ease of use, but that subset never seems to be enough to stop a trend up or down for long :marseyshrug:

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Hmm I wouldn't count on it tbh. You're just observing a historical price trend. Also when BTC has crashed, it typicially loses a whole lot more than 50%

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