07:11
Future
What causes stock prices to move dramatically during TRADING HOURS?
Earning reports and conference calls usually happen outside of trading hours. What are the catalysts that create volatility during the trading hours?
Ans:
Right now there are many things that cause volatility. The whole Europe debt crisis is the main one that comes to mind, but I also believe that uncertainty about the economy as a whole also plays a large role.
Talking about earnings reports, Expectation and perception are two of the biggest influences of stock valuations. If more people are selling than buying then the stock price will go down, simple supply and demand. If however something called the "whisper number" is not sufficient enough for investors to highly value the company then that could cause the price to drop. An explanation of the whisper number is the expected quarterly or annual number that analysts expect from the report. It is purely 100% speculation.
Another thing to think about is that volatility works on the up side and the down side. So in theory, it can work in your favor.
Talking about earnings reports, Expectation and perception are two of the biggest influences of stock valuations. If more people are selling than buying then the stock price will go down, simple supply and demand. If however something called the "whisper number" is not sufficient enough for investors to highly value the company then that could cause the price to drop. An explanation of the whisper number is the expected quarterly or annual number that analysts expect from the report. It is purely 100% speculation.
Another thing to think about is that volatility works on the up side and the down side. So in theory, it can work in your favor.
Source(s):
Independent Investor
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