Gaming CNBC

Discussion in 'Trading' started by flytiger, Nov 30, 2007.

  1. I've watched Bloomberg for several months because the personalities on CNBC infuriate me. But I'm missing too much. They cover the financial crisis much better in Secaucus.

    Anyway, a postitive guest in a bull market, or good tape, evidenced by DRY today.

    Stock up early (anticipating the guest) down just before the appearance, says good stuff, stock creeps up. Then, when the interview concludes, spike.

    Anybody have any insight on why the latter? Are they actually people who walk to the telephone and call their broker? Wuz up wit dat?

    Thanks. BTW, there was 3 sticks in this move if you were slow.
  2. cashonly

    cashonly Bright Trading, LLC

    That's a pretty standard thing. It's particularly good if the stock is in a slow time of the day. The higher up in the corporate echelon, the more likely the stock is to move.

    Also, how often do you think a CEO is going to come on and give these guys BAD news??? 99% of the time this is a long play.

    In terms of players, you have:
    1. The guys that are doing as you describe: getting in the stock just before the speaker comes on and dumping it just before he's done.
    2. The latecomers with direct access order entry who realize that the speaker is saying good things and help cause the late spike.
    3. The same as #2, but with a web-based order entry system.
    4. The resting stop orders that get triggered by the move.
    5. The technical trades that get triggered by the initial move.

    And let's not forget the market hours Cramer contents. Just like Dorffman in the old days... the guys with the fastest systems and fingers win!

    In general, CNBC can be great for scalpers as long as you have a faster secondary news source that alerts you even before CNBC of other news events so you can be in before the masses and get out when they're getting in.

    But for things like these CEO interviews, Maria telling what Bernanke told her or Cramer pounding his fists telling what a great buy TXN is (I think that was a multi-point move), you need CNBC cause they have the "audience liquidity".
  3. Pampaw


    Go FOX Business! We finally have an alternative to listening to the buffoon Mark Haines....he could single-handedly bring down CNBC....