Funk...ever hear of a guy name Dorfman?
Dorfman would come on TV and reveal some unkown company with some hot item, and the stock would fly for about 10 minutes, with huge opps for day traders. After a while, day traders would eagerly await his words to try and pounce.
How about when a CEO comes on CNBC and has positive things to say and the stock reacts positively? How about when the FOMC releases news on interest rates chances/holds?
How about the general understanding of the markets and movement in stocks that can be learned from more experienced individuals like , oh, what was that guys name, Cramer, what about Joe batapalgia, or how about all the other professionals what come on CNBC? Sure some are less knowledgeable or relevant that others, but the more info you can take in, the better you are at understanding the markets, the market participants and try to extrapolate the movements in stocks.
How about wondering why some stock just popped 1/2 buck when the rest of the news conscious world knows it was because the CEO just said that some product might have 2 pence to the bottom line...stock looks great right up to the moment it turns down. Dont you want to know that maybe thats why its moved before you buy it?
And let me ask this, and please dont take it personally (because I aint making any money selling news services) but have you ever had access to real time, not delayed, dow jones, reuters and bloomberg?
Because I have it and wouldnt trade without it. If I am interested in some stock and see action coming in, first off, I know whether there is news or not because my full quote indicates any news from those services, so I know whether I want to check it or not.
As for whether i believe Faber is he sez the market is overvalued, no i wouldnt believe him, but many do and collectively the market sighs and pulls back.
To give you an idea of how valuable the community thinks CNBC is, its a 100% stock market tv station, solely devoted to the stock market for 15 or so hours a day, all day, bringing in some of the mostly highly regarded news reporters in this field.
The CEOS of the various companies atleast believe its important as that flock to tell their stories on the media.
Unfortunately, you and I are on two ends of the spectrum. I think that the more news, info, data, someone can get their hands on, in real time, empowers the trader, regardless of time frame.
As for being distracting, how many trades are you doing that spending a few moments before or while setting up a trade, that you cant check the news?
I can understand that argument that geting news is too expensive or not worth the cost (although I have a tough time understanding how someone cant spend 100 a month (1/8 point on 1000 shares oncea month) to get such a valuable item). But to say that news is simply a distraction, I don't agree at all. To me, its more about trade and execution quality, than volume.
ps. Maria Bartiromo is just so cute and, David Faber, if you're reading this thread, we're just using you as an example. Don't sweat it that Joe has the limelight and they took your end of the day show away from you.
Regards,
Steve@yamner.com
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