Could anybody explain to me the reason for the Dow Jones pulling back from -200+ this morning to now positive?

Question

And please dont say more buyers than sellers. I am wanting to know about what "information" led to this?

Also , how come there are always these reports or who said what or "something happening" that changes things?

Are these really viable?

Answer 1

Early program selling lead to an opening drop but savy investors are still looking at this as a buying opportunity.
NAPM numbers were promising this morning and Greenspan and Bernanke had positive things to say..remember the broader market should be viewed in the long term not day to day.

Answer 2

It's the difference of opinion that makes the market. Remember these are " exchanges"...for every seller there has got to be a buyer.....Some people panic at any bad news and sell to preserve their profits... somebody buys as the price goes down,,,NOW here comes the third guy...just woke up , had a bagel...maybe even walked the dog.... and he sees that guy # 2 is getting GIZMO at $2.80 less than it was Tuesday!! Whoa, guy #3 buys... and also lady #4... ( price is going back up.....happens all over the market..the - 200 is wiped out)
Who comes out ahead? Only time will tell.

Answer 3

Remember the old fairy tale about Chicken Little running around saying "The sky is falling!, The sky is falling!!", and scaring all the other barnyard animals? Same situation with the market...it's easy to scare investors and brokers with what might ultimately be some foolish statements. Then when some equally "good" news comes out, buyers and brokers come flocking back into the bull mode. It makes no sense, but that's the market.

Answer 4

Stocks that were fundamentally solid 3 days ago are an even more attractive at this lower price. While a lot of people look at a major market drop as a time to sell.....some shrewd individuals see it as an opportunity to buy.

Answer 5

China recovered 4% tuesday and went down again yesterday, too much, given it was overbought before, so some kind of SLIGHT down correction was expected.

The market overreacted as the Alan Greenspan comment about recession.
People who buy the first hour placed their orders the last night and, as such, tend to overreact.

Answer 6

Thanks to American presidents wishes to play the top dog every where, spending billions on weapons and bringing democracy to the likes of Iraq and the rest of the world, the country is deeply in debt.

Now there are signs that China may begin to ask for repayments of those loans, hence the house of cards is in danger of collapsing and the big players on the stockmarket are rushing for cover.

Answer 7

By chance I discussed this with a very high flier in the financial world. He told me that it is always said that the markets are driven by two things, fear and greed........

Answer 8

Just the way it goes when the herd instinct takes over.