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
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.
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.