What really Makes Markets Move in a Given Day?

Discussion in 'Trading' started by Bullz n Bearz, Aug 3, 2007.

  1. Ok, I see some days the 30 yr T-bonds move sideways, today it moved up, a few days back moved down..

    What the heck is the reason the markets move like this?

    I mean, how can I be prepared for today's 20 pt moveup in this particular market?

    Same with the dow, one day it'll be down 200 points, the next day it will be up 20.

    Why do markets do this?

    The most clearest explanation of why would be appreciated.. I'm not into reading real techincal definitions..
  2. today = more sellers of equities than buyers. yesterday there were more buyers than sellers. Hence investments tend to flucuate. Hope thats not too technical. Oy vey
  3. lindq


    Fear and greed is what moves markets.

    Today it was fear. Monday it may be greed.

    Check the VIX and you'll see it all play out.
  4. nope pretty basic but well understood on my part.

    i'm sure there is more to the selling, though..

  5. Right but I'm talking during the day.. Not after the effect.

    I want to know during the market how I can better gauge sellers are taking the lead over buyers and when to get in?
  6. oh....you want someone to give you the 'holy grail'

    well, one of 2 things will be the case

    someone doesnt have it, or they wont give it to you
  7. Hey Greenhorn, do you own work. Watch the markets and stocks trade and learn to read them. That simple. Of course, it may take you a year or so to get a handle of it.

  8. lindq


    You doubt that fear moved the market today? Really, you must be joking.

    Pull up a 5 minute chart of the S&P and tell me you don't see fear written all over it.

    If you don't, I suggest another line of work.
  9. xiaodre


    The thing is, buyers can be sellers 20 minutes later and vice versa. The market participants change all the time, as well as the traders on the sidelines, waiting to become buyers or sellers...

    The clearest I've ever heard it explained is:

    The force that moves the markets is market sentiment. A trader's sentiment is a belief about whether that trader thinks price is going up or down. This belief is generally made up of many factors, and when you combine all the market participants together (and all their sentiments) you get the reason why a market moves the way it does - market sentiment.

    I hope that makes sense...
  10. There is one way and one way only to make a security go up, and that is to buy it. Conversely, the only way to make it go down is to sell it. This means that prices move only when someone places a bet and puts their money on the table.

    Someones view or expectation of future market direction never moves the market. You have to actually place a bet. As to why people buy or sell (sentiment), there is every reason under the sun for that.
    #10     Aug 3, 2007