No, but I suppose they provides the news before the market moves. I suppose the big traders buy or sells because they read the news on Bloomberg (og Reuters)...
The news does not move the markets. definitely not. And I mean the news does not move the markets. What moves the markets are the trades of the traders, depending on size and complexity of their strategy. The news always follows, or finds an excuse.
This is not right. Experience tells me so. The news reads the big traders buy or sells. It is the news that reads the trader trades not the other way around.
You sound very confident but I'm afraid i must disagree. Whilst this may often be the case with large unexplained moves, can you honestly tell me that if the fed decides to hike rates at 50bps when the market expects 25 that the news follows the trades? I think not.
The fundamentals (like surprise rate hikes) makes the big moves. Most big traders only follow the trend, which the fundamentals/news make.
I don't think that "surprise" rate hike is a fundamental. We can call a "surprise" a beyond expectations news data such as non-farm, cpi, minutes etc. which signal a further rate. I don't know how in past, but nowdays it's very difficult to find such a surprice and the price action can find one surprice in contrast to another, i.e. existing/new home sales in US for example. It's difficult...very tough business and bloomberg plays a key role only when your target is a very short term goal.
Explain the market dump yesterday 3/24, and Bugno didn't want to explain the strangle. The news didn't make that move. BB has the advantage of real time data feed, but they need the feed to make the news (it is only fair for everyone, else the market would be out of control, open to abuse and blackmail). For that, we should all be grateful, else the whole system would collapse, and we would be out of work, living in anarchy.
100% false. Just as an example, look at what happened to GOOG on the day that their CFO was speaking at a conference a few weeks ago. He inadvertently mentioned that growth was slowing and the stock dropped 50 points in 2 minutes. The news did not "follow, or find an excuse" as you said. The news WAS THE REASON for the massive panic selloff.
IF you don't think the poor home sales data which more or less cancelled out the prev days sales data caused the move, then good luck to your trading. I honestly mean that ...