Traders/Investors move the market – News is only an indirect reason.

We often read and hear interviews in the news where some guy predicts Dow will go to, for example, 5000 or 15000. These predictions are often based on looking at a macro economy such as GDP, unemployment rates, interest rate and so on. Other predictions are based on computer programs which run a lot of mathematical calculations. If predicting where the market is heading was that easy we would see a lot more successful traders than what we are seeing today. [Read more...]