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Old 09-25-2006, 11:14 AM
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Re: The Importance of the Closing Price

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While there are a lot of good comments above, I am not sure it is really as straight forward as some think.

I agree that the first stock price of the day reflects the perceived demand for the stock at the open, and perhaps a little bit of completing orders from the day before. However, it is a little simplistic to say that the closing price is so predictable, because there are many factors to consider.

A lot can happen to the momentum of a stock from start to close.

Yes, alot can happen from the opening to close. However ,even if the range was 10 S&P points if the market closed half a point from the open, this indicates a neutral market. Neither the bulls or the bears were victorious.

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