Market Momentum
Categories: Trading
The market seems to have a brain of its own. It won't go down. Even through bad news from China trade talks, the threat of rising interest rates, fears of conflict in the Middle East. It just won't go down. The market momentum is just too strong.
So why or how can this force be...such a force? Well, usually, expected or projected earnings drive the prices of stocks, which, combined, are the market. So when a moment seems to continue in a given direction, it's usually because the Street expects earnings to either out-perform or under-perform. And if a company goes from earning, say, $1.20 a share to $1.70, to $2.60, it almost doesn't matter where the market is turning overall...that stock is going up and only up.
And, uh, same deal on the way down. Winds blow in both directions.