Dow Jones Industrial Average, Tuesday Close: 10,800
Dow Jones Industrial Average, Thursday Close: 10,928 (+128)
NASDAQ Composite, Tuesday Close: 2,040
NASDAQ Composite, Thursday Close: 2,039.42 (-1)
S&P 500 Index, Tuesday Close: 1,236
S&P 500 Index, Thursday Close: 1,249.13 (+13)
Between those two events as a conference between the president of the Federal Reserve and the Senate and House Commitees on Treasury policy. Given that the indices have as a result of going up on the news and then selling profits gone nowhere, why did the market react so postively on Wednesday?
traders misjudge each others positions.
It is not a matter of what was said (for the most part that is irrelevant) the only thing that matters is what are the traders positions at any given time. If everybody had already gone long then there was nobody left to buy, when the market started going down traders begun to sell their positions adding fuel to the fire. It is all about what are the traders positions at the time that the news comes out, not about the news itself.
A conspiracy? Is that your theory? It is dammed odd.
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traders misjudge each others positions.
It is not a matter of what was said (for the most part that is irrelevant) the only thing that matters is what are the traders positions at any given time. If everybody had already gone long then there was nobody left to buy, when the market started going down traders begun to sell their positions adding fuel to the fire. It is all about what are the traders positions at the time that the news comes out, not about the news itself.
References :
Ben Bernanke, chairman of the Federal Reserve Board, said monetary policy may not tighten much further
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