Thursday, February 27, 2014

Where supply cannot adjust, price does

WSJ has a piece on the pick up in construction borrowing, a sign of future supply.  The areas in orange above, have tighter supply.  When quantity cannot adjust to make demand=supply, prices have to.  The orange areas experienced much bigger price movements than the blue ones because they denote areas of limited supply.

1 comment:

  1. There is no question at all that where there is demand there is higher price and where the demand is less and supply is too much, it obviously makes thing difficult. I am doing trading with OctaFX broker and here I also follow this supply and demand strategy which is very much straight forward yet it is seriously profitable, so that’s why I really love it and enjoy trading with them and that goes me high level of profits easily.