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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhat is wrong with stock market traders
Today, the Dow Jones rose 929 points because Trump announced that a deal to end the Iran war is coming soon, and traders jumped on it immediately. When a deal does not materialize, the market will just crash. Trump has done this several times. Why does the market keep falling for this? It does not provide any market stability.
TxGuitar
(4,377 posts)We don't matter.
Dangling0826
(65 posts)themaguffin
(5,502 posts)PatSeg
(53,917 posts)Who knows, maybe Trump lets some of the bigger ones know ahead of time what he's going to say.
Response to TxGuitar (Reply #1)
MichMan This message was self-deleted by its author.
bucolic_frolic
(56,258 posts)This was calculated. Perhaps Trump is in on the IPO.
walkingman
(11,270 posts)Corruption does not matter to those that worship their cult leader and those that becoming wealthy,,,they love it.
no_hypocrisy
(55,660 posts)You take a quick profit, re-invest, and repeat.
themaguffin
(5,502 posts)ProfessorGAC
(77,610 posts)I think big traders don't actually care about world events.
They just look to buy bargains after a dip & sell-off when a threshold is hit. They know the market, overall, overreacts to everything. They just ride the same waves they help create.
They're not falling for anything. They're counting on the chaos caused by The Failure.
Blue Full Moon
(3,757 posts)MichMan
(17,579 posts)sinkingfeeling
(58,213 posts)GreatGazoo
(4,797 posts)Their job is to invest as much money as possible with as little risk as possible. They aren't psychic and they aren't gullible. They just cover everything that can happen, good or bad. Up or down. And then something shifts the balance and all the numbers move. For pro traders the market is like a horse race but you can change your bets during the race. The odds of 'boots on the ground' went down so the market went up as they all adjusted their balance.
Trump was claiming we were going to take Kharge Island. Things were escalating. Now he says we aren't. It's not that either one of those was/is true. It is how safe does it seem to buy stock at any moment in time amid this chaos.
Emile
(43,992 posts)jmbar2
(8,261 posts)Institutional investors hold futures contracts as hedges against future stock price fluctuations. Once a quarter, they have to roll their contracts from the ones dated this quarter, to next quarter's contract. The process takes two weeks and started about a week ago. This week, futures volume is about half usual, as half are still in June contracts, while the rest are in Oct. So big moves in speculation, with fewer futures to hedge, contributes to high volatility.
To make matters very complicated, they are having to hedge against a ton of speculation on the SpaceX IPO, the entry of millions of small retail traders into markets as a result of dropping of Pattern Daytrader rules, as well as Trump manipulation.
These conditions are unprecedented. A lot of individual traders are sitting on hands, waiting for the markets to figure themselves out. Tomorrow and next week will be wild.