Why did the market rally today?
By - Prize_Cancel9331
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There was more buying pressure than selling pressure.
Only real operators understand this answer.
Big if true
You clearly dont understand this answer.
What more of an answer did you expect? The weather in New York turned sunny, and so everyone bought stocks again?
Like that explains anything. There’s always more buying pressure than selling pressure on JME (screw censorship), and the price still falls. Nobody knows what controls the price anymore. It’s designed to be impossible to know, I swear.
The price falls if more people wanna sell than buy. Solved that for you
Clearly not the case with certain securities, at least. Clearly.
It's the most fundamental basis for the stock market. I don't know what youre trying to say.
If nobody wants to buy, but lots want to sell, the seller needs to lower the price to appeal to more people, so that there will be buyers.
Maybe nobody will buy at $50, but they would be willing to buy at $45.
The opposite is true for buyers.
If nobody wants to sell, but there are lots of buyers, then buyers need to up their bid in order to incentivize people to sell.
This price movement balances the buyer/seller ratio in two ways.
In the buyers favor, the seller needs to lower the price to attract more buyers, but in doing so, you might get less people willing to sell at the going price.
Vise versa for sellers.
If anyone tries to tell you differently, they're wrong.
The stock? It’s behaving as it should, or do you have any evidence?
If you are some crazy esoteric guy you might want to stop annoying this sub with this ticker tho
Edit: looked through your post history… you might want to stick to reading instead of writing for now
SPY has bounced off the 50 day MA nearly 10 times this year, one including today.
>nearly 10 times
So… like… 9?
Your comment has 9 up votes right now as im replying.. conspiracy??
No. But more than 8.
this explains nothing
What does bounced off mean? Went under?
When you bounce a ball off the ground does it go under it?
When you bounce a ball off the ceiling does it go over it?
In all fairness to OP, you can bounce in two directions.
No hate but this is one of the dumbest comments I've ever read on this site
No. Spy didn’t bounce of the 50ema on the daily recently
what MA are you referring to? SMA is 441 and it didn’t reached that low this week. EMA?
I had my morning coffee before my morning shit. (beware of people that try to convince you that they can explain the daily moves of the market)
no the coffee always comes first then shit your gonna crash the markets sort it out
Nobody knows for sure.
Actually I do. More people wanted to buy than sell.
Actually I do. It's because I sold on Tuesday.
Market doesn't like Thursday's - CNBC probably
As if people rather than computer algo’s are doing most of the buying and selling
Number of people is not equal to amount of volume.
It would seem that there were an equal amount of buyers and sellers.
Just the usual cycles
7 days of negative closing had to be countered.
This shows general sentiment is still bullish.
One green day after seven red days shows sentiment is still bullish? That logic doesn’t hold up. Every single time the market goes down there are green days interspersed within the downtrend. Even when the market completely crashed in February/March 2020 there were multiple days where the market closed positive.
It’s about where it bounced. It can still go down obviously if it retests the support, but the level it bounced at kept it above key MA levels and channel support, meaning it’s still generally bullish (if we’re going by TA)
Hedges rolled off...that's a bullish sign.
Making this comment without actually explaining anything is more harmful than helpful.
Rather than actually present an argument you’re just going to accuse me of being naive?
You used flawed reasoning to conclude that sentiment is still bullish. I’m not arguing against your conclusion, only the reasoning that a green day after seven consecutive red days supports that conclusion.
As long as the fed is jizzing free money into the market there won't be much of a change. Every time there is a dip there is more money waiting to buy. When the fed starts to taper. It will get dicey.
When they start to "taper", they are still jizzing money, just a little less outrageously much. It will change nothing in itself, only sentiment might have a tantrum.
The phrase, jizzing money, wasn’t that used by Alan Greenspan originally?
Believe the quote was overly exuberant jizzing money.
“Irrationally exuberantly stimulating the jizzing of money” Greenspan, CNBC interview Davos 2006
Yes, he coined the phrase I'm only repeating it. I take no credit.
Sentiment effects valuation. Stocks are overvalued at least to some degree. Most agree the fed is propping up the market to a degree with free money. They can't keep printing or inflation will get out of hand not to mention they need to raise interest rates to give a buffer for the next pull back. All this means the fed will soon raise interest rates and we will see the market correct 5-20 percent. Until they do there isn't much to worry about. From my viewpoint this isn't so much of an opinion as an observation. You keep hearing buy the dip. Where is all that money coming from?
Because there is a shit ton of money out there still to come in lol
Stop worrying about what the market does or will do or won’t do. Focus on investing in companies you believe in. That’s a much better way to live, believe me.
Tomorrow is quad
I can think of two reasons, one the Fed printed more money and the Fed printed more money.
Yep. This right here.
Printer makes money, and it goes straight into the market.
Market was at technical lower limits of downtrend. So the bounce. Looking at Fibonacci, fractals and mean reversion you’d see how technical the trading is this past week.
I have been learning TA the last couple months, very slowly lol, but it has saved my bacon multiple times and let me increase my position in multiple high conviction stocks while taking small profits.
It's the stocks market's version of astrology. Don't go down that rabbit hole.
Ah, doesn't everyone
Shimic is mostly right. TA will not tell you what a stock is going to do in the future. At MOST it can say "IF this pattern continues, and there is disturbance from outside factors on the trend, the price MIGHT land in this range by this date". I have not learned from anyone specific, mostly just watched a few YouTube videos and googled shit. However I did set myself a few unbreakable rules to keep my risk low while learning.
1. Never buy more than 1% of my portfolio on any TA single, either mine or anyone else's.
2. Never sell out of a position entirely on any TA single, either mine or anyone else's.
3. Always remember my order of operations FMST. Fundamental of the business > macro trends of the market > sentiment analysis > technical analysis
And my favorite TA/stats quote.
"All models are wrong, but some are useful".
Higher expectations of discounted future cash flows.
Because there's not much else to do
The markets will use anything as an excuse to rally
A few notes on the prior day (only relevant to trading on 9/15/2021):
1. rVol was way under iVol - almost half, that's highly unusual and bullish
2. Some hedges rolled off they day before, also positive
3. Positions built up on 4450 on spx
4. a lot of market heavy weights hit their trendlines/supports et cetera
no one can tell you the actual answer. you'll see answers from pundings, but its literally all BS....
It’s been pretty easy to know when to buy spy this year. Just look at charts and buy when it hits the support line.
Just look at finviz for spy. I’m always blown away by people not understanding this stuff and buying in at the top and then selling at the bottom.
That said I am a little nervous this was a weak bounce and if it falls under the support I have worries that it will keep diving
The spy was challenging the 200 day trend. Had it not bounced, it would have broken the long term trend and indicated the start of a pullback. I don't think people were ready for a pull back so it bounced hard. Check out Carter worths Twitter.
200 day? It didn't even make it to the 50!
Not the moving average, the trend line.
Made it well past the 50... are you looking at 1D? I'd suggest 1hr
Why the 1 hour? Wouldn't the 1 day be better to see macrotrends?
For sure. But on the 1D the MA's are too slow moving to indicate anything for you. Look back to March 2020 and when the death cross happened. It happened well after the crash. But if you look at the 1hr it at least provided some value
1d, spy usually bounces off the 1d
Ccp spooked investors, now flocking back to US markets
The market doesn’t make any sense anymore, sometimes goes up on bad news and down on good news…
The market doesn't usually react to news, normally the news comes after...it only really reacts to black swans, which we haven't had in a while.
Wall Street was running out of red paint so they switched over to green paint. They’re getting more red paint for Thursday (as I’m writing this).😉
HF is getting all on board before the crash. So they can Steel your cash!
i see what you did there
Market is just manipulated and fuckery happening all the time
Been bouncing off the channel for months
Check the 3 month chart of SP500. It's done this multiple times. Almost reliably so. If the trend follows the last few, the next week will be pretty green.
The Dow moved down to a trend line, SPY moved to a moving average, and the QQQ is above an ascending triangle. It’s close to support.
Many major stocks also fell to support from over a week of red.
It looks like a good time to buy to me.
You know there's up days in down trends, and down days in up trends right? Or did you think the market went up every day until the crash, and went down every day until the next bull market?
No, its just that a lot of stocks were close enough to touch their 50 mas and i was hoping they would touch it b4 bouncing , granted they were close enough for me to say eh ill hop in now but still wouldve felt much better if they had dropped a little more b4 the recovery. Thats why i was asking for what the catalyst was
That's a tough game to play tbh. You're really talking about +-5%, which over the long term is negligible. Most research shows the best time to buy is ASAP and the opportunity cost of waiting exceeds the benefit of being strategic.
A fake bounce to get people thinking that we're going higher. I mean we could because the manipulation and corruption of the market knows no bounds, but come on, look at the world around you. Shit is on fire
Geopolitics in Asia has partly to do with it. Gas and oil prices rising. Check out KUB, making great cashflow in Ukraine. There is a DD report on CanadianStockResearch. Bids are building up
Thinks were oversold and sitting at low prices. Was some great entry points for buying calls and selling puts / credit spreads today.
No one can predict the market 100%
Better news on delta variant helps...
Probably inflation pricing in 😂. Is been cyclical with every CPI report for the past few months
the state of the market right now is known as "Goldilocks" state. To explain it simply, its a state of being neither too hot or cold. In economic terms, it means that rise in stock prices are being completely justified by rise in the economy. Financial institutions know this, and they are buying every dip. In fact, they've been buying every dip since last year. Yes, even through the chaos we saw in Feb-Mar.
Be careful though, because its very very hard to enter in a goldilocks state, but its even harder to keep it going. We dont, and cant know where the ceiling is, but for now there is a floor. And thats why nasdaq dow jones and sp&500 are posting all times highs every week since last year.
So yes, there were more bulls than bears.
It’s called manipulation
Gavin Newsom survived being recalled yesterday.
So the market has bounced off the 50 DMA every time over the last 10 years and somebody asks why it bounced. LoL. You can't be serious.
I think it’s a fair question to ask.
My gaming stocks fell