Why are stocks up??

Discussion in 'Stock Market' started by DavidS, Dec 5, 2008.

  1. DavidS
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    DavidS Anti-Tea Party Member

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    The worst retail data EVER, the worst unemployment report in 34 years, and we're trading HIGHER for the day?? Why??
     
  2. KittenKoder
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    KittenKoder Senior Member

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    The stock values change a lot, a slight increase can occur even in the worst times. It's like a mountain range, a LOT of ups and downs, the trends are the important data to look at not the actual rise and fall. It's more complicated than just that.
     
  3. Paulie
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    Paulie Platinum Member

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    Because they're still perceived as being "cheap" right now.
     
  4. Valerie
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    Valerie Gold Member

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    Nothing goes straight up or straight down. The market needs to grind out over time and find a natural bottom. There will always be up days in a bear market and down days in a bull market. The news you're talking about may have already been anticipated and "priced in" so to speak.

    Also, it's simple supply and demand. If more people are buying shares than selling shares the price of an individual equity strengthens. And there's lots of retirement money coming into the market this time of year!
     
  5. Andrew2382
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    Andrew2382 Gold Member

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    stocks went up right after OJ was found guilty

    Coincidence?
     
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  6. editec
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    editec Mr. Forgot-it-All

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    Because the day-trader bears took their profits the day before, and they need to give a gullible "In it for the long haul" unwashed public time enough to regroup and gain a little confidence so they can fleece it again in a couple days?

    Just a guess, of course, but Cramer leads me to think that's the game that's being played right now.
     
    Last edited: Dec 6, 2008
  7. NOBama
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    NOBama Senior Member

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    I wonder where you've heard that before? I've only been pointing it out to you since I found this site.

    Typical Cramer though, he can predict the past with the best of them!
     
  8. Valerie
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    Valerie Gold Member

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    Yeah, right! Hindsight is always 20/20. ;)
     
  9. Toro
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    Toro Diamond Member

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    Because

    - the market is a forward discounting mechanism. What happens now is far less important than what the market thinks is going to happen in the future. This was the worst nonfarm payrolls number in 34 years. How much worse can it get? In fact, the 1974 bottom occurred a month before the worst NFP number ever. The economy shed another 1.13 million jobs in the first half of 1975 and the stock market was up over 40%.

    - the market is very, very oversold. Much of this selling is forced selling driven by market liquidations.

    - stocks are cheap

    - the market is showing classical signs of a bottom, i.e. going up on bad news, positive intra-day reversals on huge volume, etc.
     
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  10. editec
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    editec Mr. Forgot-it-All

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    I'm sorry NObama, I guess I must have missed your posts that described that.

    You probably wrote it, and I was too dense to understand that you were warning us that the game was RIGGED.

    It IS annoying when an expert from afar get's quoted and he's saying essentially what you've been saying all along, and everyone gets all agaga over how brilliant they are, isn't it?
     

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