While the stock market often seems driven by headline news, veteran analysts and market theorists suggest that a "hidden" layer of professional activity and structural shifts often dictates the upward trajectory of stock prices.
. This approach reveals how "Professional Money"—syndicates and market makers—manipulate supply and demand to drive prices up. Trade Mindfully
7. Dark Pools
Key findings:
2. Central Bank Intervention
Why it drives prices up: There are only 500 companies in the S&P 500. 401(k)s demand a certain percentage of stocks every two weeks. Pension funds must buy. Sovereign wealth funds have no choice. When trillions of "new" dollars enter a closed system of assets, prices rise.
Conclusion
The Undeclared Secrets that Drive the Stock Market Up