re: So what happened there in the last 30 minutes of the market?

quote:

---

I’m a newb and don’t get this. The market shrugged off 4x the record jobless claims, but is spooked at the possibility of bad news over the weekend in the face of the stimulus being signed? What could possibly come out over the weekend?

Seemed like we were becoming jaded to bad news and starving for good news, which we just got.

This shite’s confusing.

Edit: and the futures are down 900+ points...

---

JMO and others can obviously disagree. But I think a lot of people over-estimate the effect of real data and under-estimate the effect of group optimism or group pessimism when it comes to stock market values.

Many, if not most, stocks are not really priced in a close relationship with the value of their net earnings, debt, or other semi-objective metrics. Instead people put a disproportionate amount of faith into their sense of the momentum of a stock or a group of stocks.

But, after the fact, you will see many investors treat those short term values as if they were really meaningful (rather than an effect of momentum and group think). By this, I mean people will argue that Stock A or B should quickly return to a recent high or low value because it was recently at that value. But that isn't a meaningful value unless it was really based on the quantifiable metrics of the stock - and it often was not.

Anyway, JMO