Why did the market rally at the close even though ALL of today's news was bad?
Answers
2222 points
readytoretire answered one year ago …
Not all of the news was bad. HP reported a great qtr. And some of the buying was due to A Bush being taken off the S&P 500 as it is being acquired, so funds that mirror that index had to buy other stocks. Also, as the market tested the 2003 low, sideline players came in looking for bargains. Also, wholesale prices dropped huge, so mid-term that is bullish for as inflation looks more under control.
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546 points
warren answered one year ago …
Ever hear of the PPT or presidents working group? There is a good chance when counterintuitive action as such happens they have their hand in it. That is part of the problem we need more fear which they will not yet allow.
Warren,
www.preciousmetalstockreview.com
474 points
spider348 answered one year ago …
One reason is...markets can be manipulated by large traders. And a narrow breadth run-up at the close can simply be what's called a 'trader's hook' . Attempt to draw in buyers who take positions on the close - smart traders short into this knowing the odds for a sell-off are still in their favor.
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3943 points
MNSL answered one year ago …
As Spider348 said market can be manipulated by large traders, top investors, top shareholders and some hedge funds etc. They have all types of information including insider information.
If they want they can manipulate at any time. Current market is not efficient. Investors should careful about their investment, savings, selecting money mangers, selecting insurance policies, buying houses, selecting superannuation mangers etc in the future.
In addition we should trade less and should be careful about selecting investment in the future. Otherwise you will always make other people rich while you are becoming poor. That is what happening to many people now.
If we do not know the market well we should handover out money to mange people like Peter Lynch specially market like today.
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