Monday, March 16, 2020

+3: My View For How Stock Markets Work

Because of how much I do not like situations of common knowledge that is treated like non existent thing, like this, I have always thought about reiterating a view of mine regarding how stock markets here work, which you may not hear somewhere else. So today, I thought why not do this at this time for whoever wants to make use of it (after submitting it to his judgment of course) because of what is going on with the markets.
Lets start first with this question: Ever wondered why there seems to be such reactions to bad news in stock markets but not even close elsewhere? How much of that can be really explained with the available liquidity aspect alone? You may hear that the market went down because of how investors reacted to this or that news. However, the view for which I continue to find support, first in the small or micro cap stocks and now with the big ones after I just started there, suggests more the role of some of those with sufficiently big financial  power in pushing for the selloff. Actually, despite being very new to the world of big caps, it also seems like being no different from that of the small ones in that there are such guys on both ends of buying and selling stocks, competing and cooperating with each other across those ends through how they affect regular guys in the middle, accumulating and preparing for future accumulation of the stock at better prices.