Investors act on emotional behaviour. They react on emotion rather logic when analyzing stock trends. A share price representing the value of a company in the financial system is flawed as emotion is a huge driver in price growth not fundamentals. Fear and Greed together fuel our instincts which cause us to act in a manner that is disruptive. These factors alone create bull markets, bear markets within the stock exchange.
Here's an example:
- How those two alternating emotions work for traders, and how they can distort their decision process, has been the subject of neuroeconomics studies. More generally, those researches show some primacy of emotion over cognition in decision making.
Copper Fox Metals is up 50% in the last few days and no one is discussing this event. This is a huge positive that signals a reverse trend in the share price. This upward movement allows us to assume this is a very bullish movement for the stock's value/trend.
What I find funny is, when we are down 20-50% the entire community jumps on the company and our management team in which everyone expresses their concerns and doom day theories but on a event we are up huge where people gain a great amount of money and value back from the lows of 31 cents the board is silent and out to lunch!
Speculation and theories:
-metal values have bottomed, and prices are sustaining with an upward trend
-Tax-selling is nearing an end, and buyers are returning
-Great drill results are on its way with an anticipation of news being publicly released "soon" (my pick)
-Stock price has bottomed, cycle running it's course back to fair value
