When a stock starts moving up, this dynamic creates a self-feeding loop. The market doesn't just go up for fundamental reasons; it goes up because the mechanics of options dealing demand it .
: Professional traders often "mark down" a market to flush out weak holders. Low volume on these drops indicates a lack of selling pressure, signaling that "smart money" has absorbed the supply and is ready to drive the market up. Perceived vs. Intrinsic Value : Market movements are driven by the undeclared secrets that drive the stock market upd
Traders behave recklessly because they assume a safety net exists. This behavior itself drives prices up. It’s a self-fulfilling prophecy. As long as traders believe the Fed will save them, they buy the dip. That buying prevents the crash, which justifies the belief. When a stock starts moving up, this dynamic
We are told the stock market is a giant calculator. It weighs earnings reports, interest rates, and GDP growth, then spits out a logical price. Analysts call this “fundamental analysis.” Textbooks call it “efficient.” Low volume on these drops indicates a lack