The Undeclared - Secrets That Drive The Stock Market !!link!!
But here’s the killer. When the market finally drops—say, 2% in a day—algorithms start screaming. The funds that sold volatility are forced to at any price to hedge their losses. To buy volatility, they must sell stocks. Selling stocks makes the market drop further (now 4%). That drop forces other funds to sell more. It’s a death spiral.
VSA teaches that when professional "smart money" enters the market, they leave footprints in the form of specific volume and price relationships. For instance, high volume on a narrow price spread often indicates a transfer of ownership from professionals to the "herd". The undeclared secrets that drive the stock market
Furthermore, buybacks create artificial demand. Companies often aggressively buy back their own stock at market peaks, using cash that could have been invested in innovation or wages, purely to boost the stock price and executive compensation packages (which are often tied to share performance). It is a legal But here’s the killer
The secret is that markets are discounting mechanisms . They don't care about today's news; they care about tomorrow's expectations. But more than that, they are driven by two primal, undeclared emotions: . To buy volatility, they must sell stocks
