The news will tell you it’s interest rates. Your broker will tell you it’s earnings. The pundits on TV will scream about inflation or the jobs report.
The secret is that stock prices are driven by the variance between the story and the reality. When the story is better than reality (Tesla in 2020), the stock flies. When the story is worse than reality (Meta in 2022), the stock is a bargain. The undeclared secrets that drive the stock market
Behind the curtain, the stock market is not driven by logic, spreadsheets, or even the health of the economy. It is driven by a handful of undeclared secrets—psychological traps, structural loopholes, and ancient instincts that Wall Street profits from but never explains to Main Street. The news will tell you it’s interest rates
Most institutional trading happens in —private exchanges where big funds hide their intentions. When a pension fund wants to sell a million shares, they don't dump them on the public exchange (which would crash the price). They trickle them out in the dark. The secret is that stock prices are driven
All content © 2008- Tyler J. Wagner