Discounted News???

April 2, 2002
Duke Heberlein

While it is the belief of many traders that news is discounted or
unimportant, this is not always the case. All news is not created equal, and the
trick is to know what may move the market and what will probably not.

09:02:54

News Alert

The bearish news coming out from PeopleSoft (PSFT)
(8:54 post) could spill over into other issues in the software sector ($GSO.X).
Issues to keep an eye on for possible selling pressure in sympathy with PSFT
are: Advent Software (ADVS),
Check Point (CHKP),
Internet Security Systems (ISSX),
Electronic Arts (ERTS)
and Intuit (INTU).

The bearish tone of the news out of PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating) does indeed
affect the software issues, and traders getting on the short side are able to
capitalize on the news.