HTZ, AGN

[Mike]

Hi, Mike -

What would you consider a reasonable time period over which to calculate the supply/demand ratios such as those cited in today's post?

Thanks

I calculate %Demand / Supply as 100 * (50-day average volume / float)

I use 50-day also as my calculation of Liquidity = 50-day average volume * price

[Dallas]

Thanks, Mike. One quick follow-up:

I can understand equating high float turnover with high demand in the context of a bullish view on a given security. Would the reverse be true in a bearish context?

[Mike]

Thanks, Mike. One quick follow-up:

I can understand equating high float turnover with high demand in the context of a bullish view on a given security. Would the reverse be true in a bearish context?

Oh yes, high demand / supply is also seen on stocks being sold off. Context is important which is one reason to analyze a base for proper price and volume action.