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Market Reaction

Discussion in 'Beginners Bootcamp' started by onwukarisa, Jul 7, 2008.

  1. onwukarisa

    onwukarisa Private, 1st Class

    Feb 21, 2008
    Likes Received:
    Hello All,

    Why is it that after a news is released , at times theres is no immediate reaction until after some time,the market reacts accordingly .at times, this reaction could be opposite to whats expected.

    please can someone explain
  2. Pharaoh

    Pharaoh Colonel

    Oct 3, 2007
    Likes Received:
    Short version:
    1. Revisions can really make things unpredictable.
    2. How closely economists agree on the expected number can cause variation.
    3. Other report released earlier in the day or at the same time can contribute to market movement.
    4. Sometimes the market will do totally unexpected things. The market is driven by the buy and sell orders of huge numbers of traders. The signals are just Sir Pipsalot's best estimate of what the reaction should be. He's right more often than not, but no one can be 100% accurate in this sort of prediction.

    Long version:

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