What Makes Stock Prices Go Up (and down)

Let’s say you have found what you think is a great stock to trade.  The product is strong and ahead of any competitor, the need for the product is good, the company is run well with good marketing and fundamentals.  Here is a question for you to answer.  

• Strong Product

• Technically Ahead of Competitors

• Company has Good Management Team

• Strong Company fundalmentals

With all the company has going for it, what are the chances your  trade will be successful?  100%, 50% or as low as 20% chance for success. Watch here to find out!

Lot’s of traders get in touch with me because of my track record of success.  What used to confuse me and still has me shaking my head is most of these traders place trades no understanding of what moves prices up and down.

So here is your new brick to add to your trading foundation.  The Market then Sectors and  Industries have strong pull on prices.  

• The Whole Market 

• Each Sector

• Each Industry

Without the broad picture information at your fingertips, you are 100% gambling no matter how good the stock looks.  It is a roll of the dice.

You have probably already experienced this phenomenon.  Good company so why didn’t the price just go up?

I will say it again and you should write it down.  The Market place has a stronger pull than your stock

The sector has stronger pull than your stock.  Even the industry has a stronger pull than you lone stock.  Get used to it

And have your finger on the pulse of these strong magnetic pulls.

Here’s an example of what I am talking about.   Two stocks in the  same industry.    FDX and UPS.

FDX had had a great reaction to it’s earning report a couple of weeks ago and was traveling in a sideway up pattern and looking pretty good. 

Last week  UPS reported Earnings and there was a sell off by the trading herd and the price went down.  

What further made it confusing  was UPS beat it earnings estimate.  

Explaining herd reaction is an art.  One that I encourage Investing Buddies to master.

UPS earnings sell off also affected FDX, a company in the same sector and industry.  The companies are mirror images of each other   So the UPS sell off also disrupted FDX’s price action pulling it down also for no reason.  

This happens repeatedly.  Knowing that, it is good to know the not only the whole Market pulse but also what is happening in the Market Sectors and in the various industrial groups.

That is what this week’s deep dive is all about on this Thursday webinar.

We have been doing thee deep dives all this year.  I am having a lot of fun and the response from my Investing Buddies has been great.  I am getting a lot of emails suggesting various topics folks want to take tdeep dive on next.  If there is an area of trading you want to know more about, email us and it will go on the list.  Try us out on the link below and take advantage of the trial offer and the fun we are having on these deep dives.

This is a blatant advertisement.  I want you to be part of Investing Buddies for only and only one reason.  I think we are the very best options educational group around.  I got lucky when I started options trading back in the dot.com crash and hooked up with a couple of amazing teachers.  Now I am passing it along plus more of what I have picked up over the past 20+ years.  I get great returns week after week and year after year and I want the same for you.  Once you are part of investing buddies you get to see my trades either every day or every week.