And Now For The News
While it is true that much of the time the market discounts news, it can many
times be the catalyst for some awesome trades, hence the advent of the new
TradersWire Interactive
News Alerts. Many times news, in the
correct situation, can provide fuel to either sustain a rally or ignite a
reversal. Yesterday’s example of Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating) is a great example.
12:08:26
News Alert
Tyco (TYC)
Chairman Kozlowski and CFO Swatz are both buying 500,000 shares of company stock.
Kozlowski said he believes the shares are undervalued. TYC is trading at 29.85,
down 3.82.
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The stock is trading down for the day when the TYC execs make the
announcement they are going to pony up their own cash to purchase shares of the
company’s stock. The masses pile on as they view this news as favorable. As the
stock climbs higher, technically oriented traders have several opportunities to
profit from the move.
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You don’t have to trade directly off of news to take advantage of it. Is is
an art, not a science, but momentum begets momentum. Learn to take a look at the
charts in conjunction with news events. When they move a stock and a setup takes
shape, you will be able to pounce.
Until tomorrow,
Duke