Yesterday market down a 100, now up a 100

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Blue Collar Guy

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I thought the market was based on earnings, dividends and greed(P/E). This is the BCG layman terms definition. I know they are other things i learned in here options etc. So how did we get a 250 point swing between yesterday and today? Was this the the greed/fear factor? This the buy on the rumor sell on the news? Robo, trigger trading? Active managers? (BTW I love you active guys. we need more people investing in them as i fear everyone will index with me and we go bust:). Thanks in advance for all answers.
 
Quarterly dividends from many ETFs appeared in accounts yesterday, so if folks had auto-reinvest of those dividends that would be happening today.
 
Plus, if you look at it by percentages, a 100 point move on the dow (or even Nasdaq) isn't what it used to be.

In the late 80s, for example, a 100 point move meant something!
 
If you buy yesterday and sell today you will be labeled market timer.
 
LOL! said:
Quarterly dividends from many ETFs appeared in accounts yesterday, so if folks had auto-reinvest of those dividends that would be happening today.
Click to expand...

Interesting. I find it a little hard to picture that would cause a swing each quarter though. If it were that predictable, would those stocks get bought up by swing traders in the days ahead, and dumped after? Seems that the swing would get flattened out by those traders.

-ERD50
 
Yesterday Congress delayed HC vote. This a.m. EU indicated dovish $ policy
 
Fedup said:
If you buy yesterday and sell today you will be labeled market timer.
Click to expand...

I was going to do just that, but I couldn't find the "Buy Yesterday" button.
Perhaps I'll have to look harder...
 
The market is driven by news. Yesterday's setbacks for the healthcare bill created a lot of uncertainty, the market hates uncertainty. Today? Probably mostly a bounceback from yesterday, coupled with a few bits of good news here and there (Treasury yields up, etc.).
 
joeea said:
I was going to do just that, but I couldn't find the "Buy Yesterday" button.
Perhaps I'll have to look harder...
Click to expand...


You need to change your mental attitude, it's not your vision. It was there when I looked.
 
Curmudgeon said:
The market is driven by news. Yesterday's setbacks for the healthcare bill created a lot of uncertainty, the market hates uncertainty. Today? Probably mostly a bounceback from yesterday, coupled with a few bits of good news here and there (Treasury yields up, etc.).
Click to expand...
I was surprised it went down yesterday. But it was good buying opportunity.
 
Blue Collar Guy said:
So how did we get a 250 point swing between yesterday and today?
Click to expand...
I think this is one of the Great Mysteries of the Universe. Nobody seems to be able to predict the market with any certainty, except after the fact. :)

I enjoy keeping track of market ups and downs. It's my favorite spectator sport.
 
joeea said:
A 1% random noise swing. Meh.
Click to expand...
This.

Right now I could write three stories about tomorrow's market, each convincingly citing current events, investor sentiment, and politics. One would explain why the market was up. One would explain why the market was down. One would explain why the market didn't move much. After the market closes tomorrow, I could pick the appropriate story and publish it. And it would be exactly as useful as all the other nonsense being published at the same time.

@Blue Collar Guy you are thinking of the efficient market hypothesis, which is hotly debated. Over the long haul, like 10 years, IMO the market is efficient. Over short periods of time, like a year or less, it is random noise. And once in a while it goes completely bonkers.* Relax and watch it like you watch popcorn randomly pop, or ignore it and check once every year or two.


*(That is a paraphrased quotation from some famous financial author, but I don't remember who.)
 
Thursday morning, currently down 107, no wait...now it's down 120!

Rolla-coasta, uh-hu, rolla-coasta, woo, hooo, hooo, hooo!
 
O2Bfree said:
Thursday morning, currently down 107, no wait...now it's down 120!

Rolla-coasta, uh-hu, rolla-coasta, woo, hooo, hooo, hooo!
Click to expand...

Roller coaster? I'm pretty sure a 'roller coaster" with 1% changes in elevation wouldn't even make it in the 'kiddie' section of the park. 1% grades are smooooooth sailing!

-ERD50
 
I was able to buy some shares I sold yesterday. I set a lower limit so only partial execution.
 
ERD50 said:
Roller coaster? I'm pretty sure a 'roller coaster" with 1% changes in elevation wouldn't even make it in the 'kiddie' section of the park. 1% grades are smooooooth sailing!

-ERD50
Click to expand...

Ok, how about this: "People all over the world, join hands, start a love train, love train, ride, let it ride, let it ride, Let it ride..." :dance:
 
Two weeks ago it was lower than it is now, and before that, lower than that. This is all a big ho-hum to me. Stock markets go up and down. It's much more exciting when the market reaches an all time high than when it bobbles around like this, IMO.
 
Actually I keep an eye on it, looking forward to the 20-30% hit that will be a buying opportunity. We're sitting on more cash that we need.
 
I know, it's weird. Like, some days it goes up, and then other days it goes down.
 
I got my order executed for the price I wanted. But I wouldn't get too excite. It's my Short term bond ETF. I make pennies but it's still fund to make some money in this roller coaster ride. It's better than sit around and gain nothing.
 
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