'The irrefutable law of supply and demand governs the movement of prices in stock, or anything else for that matter. If there are more buyers than sellers willing to sell, prices rise; on the other hand, when there are more sellers than buyers, willing to buy, prices decline. These imbalances in supply and demand, and nothing else, cause prices of stocks to move up and down. When you cut through all the red tape and obfuscation on Wall Street, you are left with the raw facts of supply and demand. Fundamental changes in in the underlying company's outlook can cause this imbalance, but it is the imbalance nonetheless that causes the stock to move.'
Thomas J. Dorsey