When Not To Follow Future Market Trends
When Not To Follow Future Market Trends
Certain traders on Wall Street, basing their views on future market trends, had decided that BRUCE’S book value and earnings indicated that the future’s price should not be more than $30 a share. Therefore, they had started to sell the future short between 45 and 50, confident they would be able to fulfill their bargains by buying it back at a price much nearer 30. They made a grave mistake following these future market trends, because there was one factor they did not know about. A New York manufacturer named Edward Gilbert was trying to oust the Bruce family from control of the company. He and his associates were trying to obtain a majority of the 314,600 shares outstanding which the Bruce family owned. It was this move that had rocketed the price. The volume was terrific, and following the future market trends, more than 275,000 Bruce shares were traded during a period of ten weeks.
