Why is the market rallying?

Discussion in 'Trading' started by PaulRon, Apr 1, 2008.

  1. PaulRon


  2. Bowgett


    because it wants to....
  3. More buyers then sellers, its a supply and demand thing
  4. So true, yet so few are able to grasp this simple concept.
  5. Right its always a plot against the little guy
  6. PaulRon


    reminds me of the intro to reminiscences of a stock operator when a reporter covering the copper market said the same thing, more buyers than sellers, and the editor said to him <b>why</b> are there more buyers than sellers...

    i appreciate the responses but i thought i might have missed a report or a rate cut or something 300 points off the bat is not very usual
  7. New Quarter New Money
  8. relatively good financial news came out this morning, but the move started 7 hours before that.

    the press will always, every day, have a reason why the markets went up, and why they went down. More often than not, it was purely technical.
  9. ElCubano


    but why more buyers than sellers....:)
  10. Brandonf

    Brandonf ET Sponsor

    Most generally its a supply demand type of thing. People get all confused and they think that stocks are an actual representation of the underlying company, when in fact thats only a small part of it. A good analogy is that a stock is a commodity that has some relationship to the underlying equity as well as the market in generall and any number of other things. Also a general comment. When people say more buyers than sellers, generally thats not the case, because for every transaction someone is on the opposite side of it. A better analogy is to say the buyers are currently much more aggressive than the sellers.

    In any case, we are dealing with, IMHO, a sold out market. Will see what happens when earnings start to come in, that will give us a much more clear picture of what is going on.
    #10     Apr 1, 2008