What is it that causes a player to move from $10 - $40 in just a few days?
It is, quite simply, demand outstripping supply in a big way. A frenzy.
What causes a frenzy? Long-term investors (buying for performance) and short-term speculators (buying to make a quick profit) both must own a given player at a given time.
Fear and greed dictate short-term moves in the stock market and in individual stocks. The fear component is not particularly relevant here because there is nothing really to lose. There is, therefore, just the greed. "I'm going to make money if I buy the guy right now" and/or "I gotta have this guy for this game."
That's what went on with JJ Hardy, Aaron Rowand, Ian Kinsler, and a few others. This phenomenon is only just beginning. The stars who don't perform and/or get hurt will decline slowly and steadily in value throughout the season. That money (and made money) will go into these mania type situations.
The way to play it - work the off day. A number of quality shortstops rested this past Thursday, opening the door for Hardy to spike. People see the spike and want to get in on it - furthering the issue.
Who's it going to happen to next? That's the $100K question. Look for the beginnings of a spike in closers Henry Owens and Rafael Soriano come Sunday night.
On the injury front, also keep an eye on Harden as he potentially returns this week.
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1 comments:
Good for people to know.
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