RE: Up 2% now. Brent crude down to $88.56c.4 Oct 2023 17:16
Bhants.
The Market Makers set the price of the share, all you need is a trade of one share to tank a SP.
So in the morning, pre US opening, the US Pre-Market has trades, but only about 200k shares, those shares trade either at lower prices, or higher prices depending on whether the MM's have set it higher or lower, then the US actually opens, and larger volumes happen, at which point, the MM's want to make more on their margins, and the trades are set accordingly.
That is why, when the US market opens, the swing is normally big, either up, or down, depending on what pricing has happened Pre-Market, and the volumes that are happening when the market opens.....
It's also the "sentiment" factor, which drives the SP, especially within Travel, especially at the moment.
So talking to Stupmy offline re the TA view, the logic is about smart money in at certain levels, which is where the gaps are, and those gaps need filling. This is difficult, because it's not logic about a company, it's not fundamentals about the profitability of a company, or the future of that company, it's purely about the SP trades.
Re Oil. There is a "link", although not direct.....
Oil costs more, therefore whether directly, or indirectly, that costs companies, whether it's within the ship for the Oil to move the ship, or in the lorries to deliver the food for the ship, there is a link.
Additionally, again, the theory is that Oil goes up, everything costs more, Inflation stays up, people therefore don't have money, which they then cut discretionary spend, which is holidays, movie tickets, take-away etc.
When the Fed stops the question marks on raising the Interest rates, and Oil stays down, and therefore Inflation hopefully stays down, then in theory, Travel will rise and the concern about looking at Q4 but maybe nobody will have any money, so maybe they won't fill the ships, will then go away.
Hope that helps.
All In my opinion, of course..........
Sign In
Follow the stocks
