Every time, there’s a disaster, like a hurricane, a war, or whatever, the headlines always mention Wall Street activity. I try to read the articles, but the trader lingo is Ancient Chinese to me. What are people selling? Who’s buying from them? What are people buying? Who’s selling to them? Why are they doing it, and why during this time? is it going to make prices go up? how does that work?
Post a sample article or sentence and we will try to make sense of it for you. This is such a broad topic that we don’t know where to start, as there are many different markets for many different commodities.
A big part of the hoopla is when an event happens, it will effect the supply and/or demand of a product. Using the example of Hurricane Katrina and oil prices, this means that as the hurricane causes oil rigs to shut down, there will be less oil supply available. Because of that the price will go up and eventually a gallon of gas will directly cost you more.