The one's setting up the news and the MMs had factored the news in, and knowing there was nothing to back it up, dumped prior to the event to be sure they took prime advantage of skimming off the dive. Usually the dive is immediately after news.
What is the matter with everyone out there. Where have all the brains in the heads of the investors gone? The oldest adage in the market is: BUY on RUMOR, SELL on NEWS. I'm as much lecturing myself as appearing to lecture you or anyone else. I've just been horrified at multiple posts from confused investors that their stock DIDN'T move after good news!
That is the MM way. That is the Market way. That is the worldwide exchanges compbined. They all buy on rumor, sell on news. I can't believed how no one seems to understand that is still the first rule of stock.
It is first rule, constant, almost always, without fail. someone please prove me wrong, with more than one isolated instance.
You can't buy on the news. You'll take a bath everytime unless you're in for long. Long long sometimes. I did just that on this miserable mess and also EUTO at it's little dime peak last fall. Hard lesson but learned. Buy on Rumor, Sell on News, unless its' IRA and there for the duration. Then I still think it's wise to sell and buy back in on the dip down, losing only a few cents in commission back in, gaining tons more on the buy-back.
I need to start taking my advice, obviously. I can't believe how many posters are shocked that good news doesn't move a stock. GOOD NEWS IS FACTORED IN and only signals time to take profit, I would most certainly believe by looking at every chart in the Value Line books, even. Let alone the hypothetical fluff and smoke and mirrors people find and post on SI and Yahoo.
There was a huge spike on GMGC the other morning. Shot to 12 for a few moments. Tracing it I found a Yahoo rumor of merger about that some moment. It had been around for a few days, but someone bit.
Dangerous place, the stock market. |
