The problem with this idea, and others like is that specialists can exploit it.
To use Ray's example of Haliburton, Specialists were able to exploit the demand, sell short at the top, drive the price down, cover their shorts, accumulate more stock as people sold at the bottom, and, finally,create more demand by raising the price (on light volume) to once again sell and sell short at the top. Notice how Haliburton was able to recover quite nicely, despite the "Problems" in Iraq.
btw, Ray,
Thanks for the tip on the Panasonic digital camera. It's fantastic.