Today's big up move

Quote from kalzayani:

The dow is always attracted to is fair Values...revovles around them...so plan well and GL
KaL
These are the daily weekly and Monthly
Date Fair Value
10/18/2005 0:00 10279.73222
11/1/2005 9:00 10363.72829
11/15/2005 18:00 10448.43699
11/30/2005 3:00 10484.79271

Date Fair Value
10/10/2005 0:00 10488.66835
12/19/2005 0:00 10514.0704
2/27/2006 0:00 10356.58396
5/8/2006 0:00 10074.04501

Date Fair Value
9/1/2005 0:00 10564.93198
7/2/2006 9:00 10582.99165
5/2/2007 18:00 10400.08379
3/2/2008 3:00 10305.97702
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??? please enlighten me...what do you mean by "fair value" ?
 
Quote from uninvited_guest:

I assume that you asked this question because there has to be a buyer and a seller to complete transaction, and why would the price go up or down. I will give a simple example:

There are two cars in lot, both selling for $5000.00 owner must sell that day. Three outcomes to set the selling price.

#1 Along comes 1 buyer, he can get both cars for $3000.00 each.

#2 Along comes 2 buyers, both buy for $5000.00 each

#3 Along comes 3 buyers, only 2 can buy for $7,000.00 each.

In all transactions 2 cars were sold but the price was determined by the number of buyers.
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Not exactly. What matters is not the number of buyers but how much the buyer(s) is willing to pay. If sellers aren't aggressive, it doesn't take much buying pressure to advance price, which is why so many stocks so often advance on what seems like insufficient "volume".
 
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