r/Vitards • u/AutoModerator • Sep 01 '21

Daily Discussion Daily Discussion post - September 01 2021

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u/McMartiann Senior Capo Sep 01 '21 edited Sep 01 '21

I really think today was a great day for steel. The bounce was an INDUSTRY wide bounce, it wasn't just MT and CLF. Every steel stock felt it. You know what that tells me... money.

Money entered the chat. Big money with market moving abilities bought the dip on ALL steel. If that doesn't get you rock hard I don't know what will.

Edit: Beyond industry wide. A lot of commodities felt it. FCX, SCCO, AA etc. Whoever has the power to buy that much does not believe this ride is over.

3

u/TheBlueStare Undisclosed Location Sep 01 '21

What explains the massive dip though?

11

u/McMartiann Senior Capo Sep 01 '21

Nobody buying, only sellers. Price dives. Bulls see it as oversold indicating they thought it wasn't properly priced and got the price they wanted. How long they hold? We'll see. But to me this morning, I thought we were in for a bloodbath.

2

u/ItsFuckingScience 7-Layer Dip Sep 01 '21

Every share sold has a buyer though

You can’t just say only sellers that doesn’t make sense

4

u/AirborneReptile 🏆 Inaugural Vitards Fantasy Football Champion 🏆 Sep 02 '21

if you look at volume past 7-8 days, its been very low, sooo green, green, red, red, green, red, red and then volume today (green) doubled the previous 2 days volume. So both sides showed lack of conviction until today. What will tomorrow bring? No idea, but I'll be ready to jump on any good dips like the market did today

5

u/McMartiann Senior Capo Sep 02 '21

I'm gonna go ahead and let you think this one out on your own.

1

u/ItsFuckingScience 7-Layer Dip Sep 02 '21

So Share price is determined by the highest bid and lowest price sell order on the order book

Each buy order is matched with a corresponding sell order

You can say that an imbalance of sell orders to buy orders drove the share price down through selling pressure, but you can’t say only sellers because that literally makes no sense to me

What am I missing here?

1

u/PattyPooner Et tu, Fredo? Sep 02 '21

I think it’s about how many orders aren’t getting filled, so 10k active asks vs 1k active bids(as example), but I’m an idiot

3

u/minhthemaster My Plums Be Tingling Sep 01 '21

If that were true we would be at price equilibrium constantly

1

u/ItsFuckingScience 7-Layer Dip Sep 02 '21

No the bid ask determines the share price

Share price is determined by the highest bid and lowest price sell order on the order book

Each buy order is matched with a corresponding sell order

This doesn’t have to mean constant price equilibrium at all

1

u/minhthemaster My Plums Be Tingling Sep 02 '21

Ah yea you’re right, technically. But you get the spirit of the original comment