Speculation: go with the flow

Prices in financial markets always balance supply and demand. But when the price changes themselves influence the supply and demand, some odd things happen. So-called momentum investors buy because prices are going up and sell as prices fall. Their plan is to go with the flow when the trend is strong, changing tack before the rest of the world notices that prices are too high or too low. Momentum-style traders, big and small, are on the defensive. At the macro end of the scale, the US Commodity ...