Stock market

[Davy Crockett]

Does a large increase in volume on a stock that is climbing have any impact on the price of that stock ?



Hardly ever see any stock market chatter on here , Is it like a secret fishing spot , One of those things you don't talk about ?

 

[MarbleEyez]

Does a large increase in volume on a stock that is climbing have any impact on the price of that stock ?



Hardly ever see any stock market chatter on here , Is it like a secret fishing spot , One of those things you don't talk about ?

The "Volume" indicates what's happening with the particular stock. You'll notice at certain times where the volume will be significantly higher on a day when the stock is really climbing and sometimes when it's tanking. This is due to people buying or selling the stock. For me it's an indicator of heavy trading, people buying when they see a rally hoping to capitalize, or people dumping hoping to not lose their ass.

 

[deleted member]

I ain't no guru either. But, I've held some here and there. The only other thing is when I see high volume trading absent a big price swing, it's usually a sign that something is going on with that particular stock or its market sector and I need to start getting informed.

 

[eyexer]

I told you two oil company stocks to buy a month or six weeks ago. You could have doubled your money already.

 

[Davy Crockett]

I told you two oil company stocks to buy a month or six weeks ago. You could have doubled your money already.

For curiosity sake Which ones were they ?

 

[wildeyes]

marble, right, you got this. I feel good about the future going to make some this year. hell yea.

 

[Davy Crockett]

I should have asked my question differently, I understand the shares and Volume but is the share price Purely industry and company performance driven ? Or is it possible to artificially inflate the price of a stock ?

 

[Bacon]

Speculating in the markets are a sure fire way to end up homeless. The big guys will always crush you.

 

[wildeyes]

it can be price higher because of the amount of buying did to that stock. that why you hear the word (correction) in the market. At the start of the year we had a correction because a lot of the stocks were overpriced. That's the way I understand it. if I'm wrong please correct me.

 

[SDMF]

I understand the shares and Volume but is the share price Purely industry and company performance driven ? Or is it possible to artificially inflate the price of a stock ?

1. That's the way it's supposed to work.

2. Yes

Nowhere near a complete list, but off the top of my head just a few things other than operations and sales (the normal day to day business stuff) which can positively or negatively effect share pricing: Fines (local, state, federal), new governmental regulations, new taxes, old taxes, back taxes, currency expatriation, currency repatriation, forward looking statements, revolving credit terms, class-action lawsuits, merger and acquisition activity, and everybody's favoritest, ACCOUNTING IRREGULARITIES (the rest of the world call them fuggin lies!).

 

[Ponyroper]

I should have asked my question differently, I understand the shares and Volume but is the share price Purely industry and company performance driven ? Or is it possible to artificially inflate the price of a stock ?

It is possible to manipulate the price of a stock somewhat in smaller companies but it has become more difficult in recent years because the Feds have gotten better at tracking the market and they will rain holy hell down on traders using inside information if they catch them. Influencing the value of large companies like Apple is very difficult because of the sheer number of shares outstanding. Very few investors have enough money to buy enough shares to make a blip on the screen. The strategy now is to start a rumor-good or bad- and play the reaction. That's where people with inside information have the best chance to profit if they don't get caught. Years ago, before market got so huge and market valuations got so high a few large investors/speculators were often able to influence prices more easily. Case in point, the Hunt Brothers nearly cornered the market in silver back in the seventies by buying up silver and silver futures. People who had sold silver futures had to even up their positions by buying back a contract or actually delivering the silver to the contract owner. Since the Hunts held most of the silver and the futures contracts they forced the price of silver up from $10 an oz. to nearly $50 an oz. before reselling the contracts. They made millions but got caught in the act and were prosecuted. The fines and lawsuits ended up bankrupting them. I'm sure many crooks have gotten away with manipulating the market but it's tougher now than it used to be.

 

[SDMF]

It is possible to manipulate the price of a stock somewhat in smaller companies but it has become more difficult in recent years because the Feds have gotten better at tracking the market and they will rain holy hell down on traders using inside information if they catch them.

Hence, "ACCOUNTING IRREGULARITIES" IE: Worldcom and Enron. Or, if you're like GM you can whine to the gov't and have them change 150yrs worth of precedent and just make it so that bankruptcy laws don't apply to you. Manipulation is alive and well with the manipulators being roughly a decade ahead of regulators mostly via greased politician palms.

 

[Ponyroper]

Speculating in the markets are a sure fire way to end up homeless. The big guys will always crush you.

Very true. Unless you have good sources of information and are able to react quickly speculating on the stock market is a losing proposition. The game is rigged and the house (brokers) always takes their cut. That's why brokerage firms love the little traders, they get their fee every time you trade no matter whether you win or lose. If you want to be in the market find a reputable broker like Vanguard and invest in a fund that holds shares in several solid companies and then sit on your hands and ride out the ups and downs. If you're diversified enough in good companies eventually you should come out ahead. Trying to pick individual stock winners is like trying to win the lottery.

 

[KDM]

Stock Market = Legal Racketeering

 

[Davy Crockett]

Originally Posted by Bacon
Speculating in the markets are a sure fire way to end up homeless. The big guys will always cr

Very true. Unless you have good sources of information and are able to react quickly speculating on the stock market is a losing proposition. The game is rigged and the house (brokers) always takes their cut. That's why brokerage firms love the little traders, they get their fee every time you trade no matter whether you win or lose. If you want to be in the market find a reputable broker like Vanguard and invest in a fund that holds shares in several solid companies and then sit on your hands and ride out the ups and downs. If you're diversified enough in good companies eventually you should come out ahead. Trying to pick individual stock winners is like trying to win the lottery.

This seems like sound advice but there is always that itch , That gut feeling, when new technology , Patents or procedures catch your attention in an industry that you are familiar with. I would never go all in on one stock but a certain % I would be willing to risk.

Seeing GM mentioned brings up another question, If a class action lawsuit or something along those lines forces a company into bankruptcy, I'm guessing upper management and lenders get paid and stock prices plummet. But, supposing that company keeps sailing even though it is a financial disaster, Would the corporate tax return and year end financial statement directly affect the share price of that company's stock ? Or could they run till the wheels fall off without affecting share price. ?


I'm just trying to put my finger on what actually controls a company's share price minute by minute throughout the day, From what I gather it must be more speculation and world news events that could make or break the industry or company ?

Sorry for all the dumb questions.

 

[johnr]

Hence, "ACCOUNTING IRREGULARITIES" IE: Worldcom and Enron. Or, if you're like GM you can whine to the gov't and have them change 150yrs worth of precedent and just make it so that bankruptcy laws don't apply to you. Manipulation is alive and well with the manipulators being roughly a decade ahead of regulators mostly via greased politician palms.

Exactly, google Nancy Pelosi, and see the insane insider info she was privy to, that made her an even richer woman. She has no problem letting anyone know it was perfectly legal for her insider trading, as senators are exempt from any laws or accountability.
She is an absolute disgusting human being

 

[Enslow]

I told you two oil company stocks to buy a month or six weeks ago. You could have doubled your money already.

Eyexer cant catch fish with salmo or rapala cranks so I would do your own homework when it comes to buying and selling stocks. Im sure he knows an insider who knows his sisters husbands nieces best friends boyfriend who is related to a day trader who works in the vikings front office... Buuut by the time the info gets back to us regular folk it is a bit late. Kind of like a devils lake perch bite... A day late and a dollar short.

 

[Allen]

IMHO, market sentiment plays at least as big of a factor in share price as anything else. Quite a few years ago I did OK by being a bottom feeder on stocks as bad news hit the company. First it was Bausch and Laumb who had eye drops that gave people a fungus. Oops, their shares plummeted, but when you think about it...B&L's eye drop part of their business was a very miniscule part of their portfolio (optics, glasses, contacts, etc). So I bought shares of them and within a few months their price recovered nicely. Same thing with Marth Stewart's Home Living when she went to prison. Again, good company overall, so after the shares seemed to hit a bottom as she went to jail, I bought it only to watch it recover in about 5 months. There were a couple others in similar fashion that I did ok on. Then my ex talked me into buying Crocs. Bad idea...as was my choice to buy Owens Corning near the end of the asbestos litigation. You win some, you lose some.

Maybe my vision is going bad, but I don't see opportunities like this nearly as often nowadays.

 

[eyexer]

For curiosity sake Which ones were they ?

whiting and continental.

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Eyexer cant catch fish with salmo or rapala cranks so I would do your own homework when it comes to buying and selling stocks. Im sure he knows an insider who knows his sisters husbands nieces best friends boyfriend who is related to a day trader who works in the vikings front office... Buuut by the time the info gets back to us regular folk it is a bit late. Kind of like a devils lake perch bite... A day late and a dollar short.

why so bitter? fish bite not so good?

 

[SDMF]

I'm just trying to put my finger on what actually controls a company's share price minute by minute throughout the day, From what I gather it must be more speculation and world news events that could make or break the industry or company ?

You and everyone else are trying to figure this out. The problem is, buy the time you've found, researched, digested, and acted upon all of those factors, they've changed and a different set of factors is in play. Companies hold bad news back until it's absolutely necessary they release it, and then it's spun in as positive of a light as possible. IE: "We've seen a 500% increase in gross sales of light Baaken crude".
What you don't see there is that they're selling it all at a significant loss, that part is buried on some eye-chart accounting page.