Investor sentimentWhat drives it?
Common sense might say fear and greed.
Fundamentals certainly don't account for the daily up and downs in the price of a particular
security. Nothing very often changes on a day to day basis that should affect a stocks overall performance.
Of course if it weren't for these daily swings and volatility investing would become boring and predictable. Kind of like owning mutual funds. What fun is that?
Sure, an earnings surprise either way, or a major industry shake up will affect the price of a stock or sector.
It seems that if the price of gold has a significant move either way, sentiment associated with either fear or greed creates the belief that the price will not stop going in the given direction.
Sometime I think that keeping too close an eye on daily girations will drive me cuckoo.
Maybe a laissez faire attitude would serve me better. The irrational marketplace is going to do what it wants. It will not abide by my wishes, that's for sure.