Quote:
Originally posted by nxixnxo
what does that mean?
nxixnxo
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He could be alluding to selling on news, which is the term use to describe those who sell when news hits the media. Once news is out on a stock, more often than not, the price of the stock will decline.
The smart money was already in the stock anticipating the good news. Now that the public has the news they will buy the stock from those in early. These late buyers have weak positions and will not be able to support the stock at the current levels. By the time something makes the cover of Money magazine, the information is degraded to the point of being virtually worthless to trade on. Some options players specifically short issues that get this kind of press.
Or he may be alluding to the pretty disgusting display that the analysts have shown in the last few years by being completely coopted by the companies they are suppose to be giving analysis on. It hard to give faith to the analysts when so many firms carry virtually nothing but positive buy ratings, even on complete stinkers, right down to almost the day they face delisting.