Why the gap down and falling price today?

Discussion in 'Trading' started by 1a2b3cppp, Jun 1, 2012.

  1. Job reports or something?

    I mean it's an excellent buying opportunity and I picked up some SPY at $129 this morning, I'm just curious why price dropped so much from yesterday.

    [​IMG]
     
  2. Why not a gap down? :)

    1250 and below by next week.

    I only day trade, so I won`t trade it, but I feel fairly confident that we`ll do, depending on where we close today of course. :)
     
  3. Just wow.
     
  4. Probably because it didn't gap up with a rising price.

    Think about it.
     
  5. Here is a short course in how economics and the stock markets are tied together.
    Key economic indicators such as
    http://www.rightline.net/education/economic.html
    has always (for as long as I have been in the markets) affected the stock markets. The big three of these indicators are inflation, GDP and Labor
    http://www.discoveroptions.com/mixed/content/education/articles/bigthreeeconomicindicators.html
    These leading economic indicators to look at are:
    http://www.investopedia.com/articles/economics/08/leading-economic-indicators.asp

    :p
     
  6. I thought about it. He asked "why?" as in "what is the cause?". The absence of an alternative is not a cause; it's merely a simultaneity.
     
  7. the generalized global slowdown of economic indicator counts as a cause?
     
  8. I will give those a read. Thanks.
     
    #10     Jun 1, 2012