HJ, to answer your young friend's question what drives the markets is not fundamentals and its not charts. It's the sentiment of the humans in the market. What is real is not as important as what we perceive to be real. Just like how a person may go into shock and have no immediate reaction upon witnessing a horrific accident or winning the lotto so too the market may not react straight away to a change in fundamentals. True, the underlying fundamentals will effect sentiment eventually ......and the charts can tell us what sentiment currently is and hopefully, if we are astute enough, they will also tell us in advance when a change in sentiment is coming.....but whatever else comes or goes it is good ol' fear and greed that continue to drive the markets.
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Last
8,630.3 |
Change
59.900(0.70%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 8,570.4 | 8,632.8 | 8,570.4 |
| XJO (ASX) Chart |