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.