On News Reversals

When a stock or commodity gaps higher
on positive news and then reverses, it is an immediate short-sale candidate near
the previous day’s high. This is known as a “news reversal,” and it captures
that century-old Wall Street strategy that if it doesn’t go up on good news,
it’s going down.

–from Investment Secrets of a
Hedge Fund Manager
by Laurence A. Connors and Blake Hayward.