I’ve enlarged believed that the explanations for daily market movements invent no sense. whether you want to know why big market players buy or sell, the media is not going to find out for you. And since you have no way of knowing who the big players are; what they’re buying and selling; and why, the best you can hope for is the daily quotes from some market analyst on a reporter’s contact list.

Thinking about those probably meaningless comments, it seems that the stock market has been moving based on three factors by the final several months: oil prices, credit market conditions, and the Fed’s actions. In theory, there are lots of possible combinations of these

three, but here are three scenarios that might be worth considering:

• Rising market. What makes the market rise in the short-term? There are two things that have really driven up the market. Unexpectedly good news on the credit front — whether it’s a bank taking a lower than expected write-down or a deal to save the bond insurers. And of course, in the short-term, stocks seem to rise anytime the Fed announces a bigger-than-expected rate cut or suggests that further cuts are forthcoming.

Continue reading Why the market’s going nowhere

Original post by Peter Cohan

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