How true. One stock that I own, ASML, opened down 8.4% from yesterday’s close, and then it rose 13% from the morning low to the afternoon high. The invisible hand is spastic.
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Here’s the main reason that Mr. Market was off his meds. Mostly technical.
We’ll see what today looks like.
'38Packard
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Rallies are nearly always explained. Then again, so are mysterious lights in the sky, crop circles, and other phenomena which are often unexplainable.
My theory for such rallies is: lots of algorithmic trading following a sudden burst elsewhere, followed by lots of FOMO by human traders, all for little to no reason.
It’s like when there’s a line of solders standing ready to fire, and the Sargeant says “Hold your fire” and then one guy doesn’t, and suddenly there’s a huge volley from the entire line because one guy pulled the trigger early. The madness of crowds, sort of.
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