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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Threei who wrote (12199)3/7/2001 8:05:14 PM
From: Eric P  Read Replies (5) of 18137
 
I think someone has already commented on this, but I think the new Fair Discloure regulation has made trading more difficult.

Previously, the public relations folks at a company would whisper the good/bad news to their favorite analysts prior to public release. As a result, the analyst would raise/lower their earnings estimates and the stock price would gradually rise/fall as a result. This old way of doing business was inherently unfair, because the analyst would be getting the inside scoop and be able to take advantage of this information in the marketplace before it was public information. However, as traders, we could see the 'footprints of money' and be able to take a piece out of the price move of these stocks.

These days, however, nobody knows these surprises until they are released, thus creating a reduction of trends and an increase of surprise gaps. All in all, the current fair disclosure rules are certainly more fair to the public as a whole, but I think I would prefer to trade in the old less-fair days.

-Eric
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