r/investing•
ffn

The Stock Market is down in the middle of the day and then suddenly it recovers with no news- why?

I watch the stock market during the day just for curiosity.

What I don't understand is how the stock market can be down or not doing much of anything and then suddenly it will recover for no particular reason. It just turns north at one moment of time and goes up like a rocket.

I go to the financial news and there seems to be no reason for it. No positive financial reports, no earning beats of a huge company, no political news, NOTHING. But in an instant, the market starts a quick extreme upward motion.

WHY?

Posted Jan 24, 2018, 7:35 PM UTC

18
PathTo3Commas•

This just in: The market fluctuates

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CapitalNumb3rs•

I watch the stock market during the day just for curiosity.

Maybe you should watch this sub too: https://www.reddit.com/r/investing/comments/7sonxd/the_stock_market_is_up_all_day_and_then_suddenly/

Edit: Are you the same person? These two posts are almost exactly the same.

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ffnOP•

That was kind of the joke, but I guess it fell flat.

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MasterCookSwag•

I chuckled after I saw the username, haha

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Low_Chance•

It's a parody. They're pointing out that whenever there's a 0.5% drop, people come out of the woodwork upset that there isn't a "reason" for it, but never do the same for an upward movement.

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-3†
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FactOrFactorial•

lol, good call. I'll get rid of mine.

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bobskizzle•

It's algorithmic selling after the Dow Jones futures (/YM) touched the weekly expected move +1 std dev. It then dropped to the daily -0.5 std dev price, and then recovered. Basically all computer driven to shake out the stops; it's considered healthy to find value around a new high.

Hint: big money is controllably pushing up the market to its new value after tax reform changed the math behind the fundamentals of the companies on the market. However there are periods of algorithms/investment banks manipulating prices for certain purposes, e.g. max pain for AAPL this week ($175).

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bloatedkat•

You mean, the market is acting normal for once? BTFD!

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