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Category Archives: Uncategorized

Market Reactions to Reports

To determine whether there is ample opportunity to profit from the price move that follows an event, it is necessary to study the direction of the market move and the subsequent price changes that occur over the next few days. These lagged reactions are the results of market inefficiencies; it is unlikely that prices could [...]

Trading on the News

Even without a sophisticated method of measurement, there are many professional speculators who trade on the news. When a bullish news item or report is introduced and the market fails to respond upward, the experienced trader looks for a place to sell. it shows that expectations exceeded reality and prices had already anticipated the bullish [...]

Volume Drops and Spikes

Volume spikes are carefully watched because they are seen as a significant positive action by the traders. For a stock that has been relatively inactive, a volume spike is a warning that something is changing. In futures, a day of very high activity means that the market is sensitive to news. In both cases, a [...]