I am very confused, what is causing the stock market to spike up, was there a new promise, new reports, what?
It is at 8900 right now.
Written on Monday, December 8, 2008 about an hour into trading.
The inflation rate is going to spike, for now it is down because of the massive liquidation of everything in the markets and many companies will be going out of business early next year so they are having a going out of business sell off at low prices.
So they can cause a buying frenzy and then pull the rug out and let it spike down to trap unsuspecting players that don’t know what they are doing.
February 16th, 2010 at 10:25 am
So they can cause a buying frenzy and then pull the rug out and let it spike down to trap unsuspecting players that don’t know what they are doing.
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February 16th, 2010 at 11:09 am
Spikes happen when companies announce huge lay-offs, politics – ie what’s happening in Washington or Ottawa, company mergers or take-overs.
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Experience
February 16th, 2010 at 11:14 am
The intt rates are going down. The inflation is down and there is hope of the economy to revive.
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February 16th, 2010 at 11:25 am
People can buy for any reason they want. And they usually come up with some reason to buy when they feel like buying.
Some people are probably buying because they think that the stocks are cheap. Others might be buying because they think that the worst is over. And some are probably buying because the stock market is going up. They don’t want to be left behind.
But whether stocks are cheap or not is mostly a subjective judgement. Whether the worst is over or not is just a guess. And buying because everybody else is buying is just herd mentality based on feeling and perhaps technical analysis.
It all comes down to feeling and sentiment among investors. And this can change at any time.
In the long term the market is based on fundamentals. But in the short-term everybody is trying to guess what the fundamentals are. And people’s trading is based more on feeling and herd mentality (or technical analysis) than anything else.
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February 16th, 2010 at 11:54 am
Many people like what Obama has to say. Listen to the news and you will start to see a trend when our Nation’s finances are discussed and what the plan is to fix it.
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February 16th, 2010 at 12:20 pm
Stocks go up because they went too low. The news will always try to have a reason for it but stories are their job even if their story has nothing to do with what the market did.
If stocks go up today, often it is because they went down yesterday. If they do down today, often it is because they went up yesterday.
Although the stock market is hard to predict and is known to throw curve balls, very often it is as simple as what I have said above.
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