What Moves a Market?

E

etfarb

The majority of people in the markets are looking for a magic bullet/indicator to tell them when to buy or sell but thats nothing more than a waste of time.

I want to start a thread pertaining to what moves a market (Stocks/bonds/FX/Commodities/Rates)

The simple answer is Supply Vs Demand and that applies to all markets

Index's go up and down according to people buying or selling companies

Commodities, prices go up according to how much supply there is and how much demand there is

For each asset class I want your opinion on what moves it and what it may affect directly

If your looking to make a currency trade with the outlook of a day to a week, what is forcing that currency to move up or down in value?
 
Quote from etfarb:

The majority of people in the markets are looking for a magic bullet/indicator to tell them when to buy or sell but thats nothing more than a waste of time.

I want to start a thread pertaining to what moves a market (Stocks/bonds/FX/Commodities/Rates)

The simple answer is Supply Vs Demand and that applies to all markets

Index's go up and down according to people buying or selling companies

Commodities, prices go up according to how much supply there is and how much demand there is

For each asset class I want your opinion on what moves it and what it may affect directly

If your looking to make a currency trade with the outlook of a day to a week, what is forcing that currency to move up or down in value?
More...

  • In 1936, British economist John Maynard Keynes gave the best description of the stock market I've ever heard. He said stock market investors are like judges in a beauty contest. But the idea of this beauty contest is not to pick the prettiest girl, but rather to pick the girl that all other judges will think is the prettiest.

    This simple metaphor is profound because it reveals the truth: For all of our study of the economy and companies, it is subjective perception -- not objective reality – that sets stock prices.

    And it's perplexing because, as Keynes pointed out, all of the judges are fully aware of the true nature of the contest and act accordingly. Each judge knows that he's a player in a fabulously complex game of psych and double-psych, an infinite regress of figuring out what the other guy is thinking you're thinking he's thinking you're thinking he's thinking, and so on and so on ...

    -- Don Luskin
 
there is no answer to your question in this market. i felt sales growth is needed to make a market move up 25% but i was very wrong. i now have learned how powerful the feds impact is to all markets even outside the US.

the is so much free money that can't go into the bond market because the fed has killed it. its finding a home in stocks because of buy backs and just the idea of money needing a home. its finding a longer term home with some hedge funds in buying homes and renting them out. i think the hedge funds will makes a killing on renting homes out and slowly selling them someday. you even have risk in leaving money in a bank account for a year because you don't know if it will buy the same amount of stuff as it does today. i think economist will study time period in the future for a very look time. i don't comment on fx or commodities because i never really traded them.

Quote from etfarb:

The majority of people in the markets are looking for a magic bullet/indicator to tell them when to buy or sell but thats nothing more than a waste of time.

I want to start a thread pertaining to what moves a market (Stocks/bonds/FX/Commodities/Rates)

The simple answer is Supply Vs Demand and that applies to all markets

Index's go up and down according to people buying or selling companies

Commodities, prices go up according to how much supply there is and how much demand there is

For each asset class I want your opinion on what moves it and what it may affect directly

If your looking to make a currency trade with the outlook of a day to a week, what is forcing that currency to move up or down in value?
More...
 
There is one way and one way only to make the price of an asset go up, and that is to buy it. Therefore, what moves the market is buying and selling. Now what motivates buying and selling is every reason under the sun I suppose.
 
Quote from dbphoenix:

  • In 1936, British economist John Maynard Keynes gave the best description of the stock market I've ever heard. He said stock market investors are like judges in a beauty contest. But the idea of this beauty contest is not to pick the prettiest girl, but rather to pick the girl that all other judges will think is the prettiest.

    This simple metaphor is profound because it reveals the truth: For all of our study of the economy and companies, it is subjective perception -- not objective reality – that sets stock prices.

    And it's perplexing because, as Keynes pointed out, all of the judges are fully aware of the true nature of the contest and act accordingly. Each judge knows that he's a player in a fabulously complex game of psych and double-psych, an infinite regress of figuring out what the other guy is thinking you're thinking he's thinking you're thinking he's thinking, and so on and so on ...

    -- Don Luskin
More...

Except that we know that the judges will NOT choose an ugly girl as the prettiest.

Maynard Keynes died without knowing the little gem I just posted.

All rights are reserved. No usage is allowed without prior written permission from me.
 
Quote from etfarb:

The majority of people in the markets are looking for a magic bullet/indicator to tell them when to buy or sell but thats nothing more than a waste of time.

I want to start a thread pertaining to what moves a market (Stocks/bonds/FX/Commodities/Rates)

The simple answer is Supply Vs Demand and that applies to all markets

Index's go up and down according to people buying or selling companies

Commodities, prices go up according to how much supply there is and how much demand there is

For each asset class I want your opinion on what moves it and what it may affect directly

If your looking to make a currency trade with the outlook of a day to a week, what is forcing that currency to move up or down in value?
More...

Big fishs will move the market when they are out for killing and looking for fresh blood (small fish or aka day trader).
 
they control the market period but i agree they love hunting fresh blood. how many times has the stock market broke below a support number to than just run up 5% in a few days this year. aka the bear trap

Quote from galvinlee888:

Big fishs will move the market when they are out for killing and looking for fresh blood (small fish or aka day trader).
More...
 
Serious over stretch of common sense occurring here

No doubt BM moves the mkt

But can one seriously think/ believe;

BM is on the same page – all day – every day

BM can be supported by pettily day traders

==========

Contemplate not allowing your imagination to obliterate mkt truths – for once

RN
 
Quote from tradingjournals:

Except that we know that the judges will NOT choose an ugly girl as the prettiest.

Maynard Keynes died without knowing the little gem I just posted.

All rights are reserved. No usage is allowed without prior written permission from me.
More...

Ugly and pretty are subjective perceptions. Hence, the original statement holds true. Lord Keynes as a result can continue to sleep peacefully. :)

Gringo
 
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