Can someone explain this to me?

Discussion in 'Trading' started by bonds, Apr 10, 2013.

  1. bonds


    Just looking for a rational answer here...

    On Friday on a horrid jobs # and north korea fears we finished down 40 points on heavy volume (relatively)...

    the next 3 days on no news on light volume each day we are up more than the day we receive the bad news and fear in the market.

    so how can a light volume no news day move the market up way more than a heavy volume bad news day can move the market down?
  2. lcranston


    Because sellers are for the most part done. So buyers can move price up with far less effort.
  3. I heard the Chinese are buying US stocks feverishly. They are using a portion of their trillion dollar US dollars reserve to buy US stocks, real estate and commodities. If you find a stock going up in price, you are likely to find some Chinese behind. They are everywhere.
  4. The Market pays speculators who help keep it alive. It must make transactions to exist.

    Panic based transactions destabilize The Market and threaten its continued existence.

    Faith based transactions, based on some known probability, do the opposite.

    Likewise those who fight long term trendz get smashed while real partners to The Market get paid for helping it move toward fair value.

    The helicopter is still in effect, and money flows from the many to the few.....
  5. Then who is selling the things that buyers are buying to move this market up?
  6. newwurldmn


  7. bonds


    I just saw on tv they saying the Japanese are coming in during the day with piles of free money buying the US market
  8. jnbadger


    Why ask for rational answers? When the market goes up in the face of bad news, just go with it.
  9. lcranston


    Every transaction involves a buyer and a seller. Otherwise there would be no transaction. Perhaps thinking of it instead as buying pressure and selling pressure. It is an auction market after all, and if there is great demand for something, price will rise unless there is an equal or greater pressure driving price down.

    The Law of Demand and Supply is a law for good reason. :)

    The general tendency is to look for the "why?". But the why is irrelevant. Is price going up or down? That's all that matters.
  10. What's that one of the Market Wizards said about when the market goes down on good news and up on bad news? Basically a clear sign to ignore the news and not fight the market, or something to that effect.
    #10     Apr 10, 2013