Seeking a news/stock scanner for fade the move

Discussion in 'Strategy Development' started by Lilypond10, Jul 15, 2008.

  1. Hi,

    I'm building a simple trading strategy as a new trader that I believe should be low risk and easy to research and execute. Your strategy is welcome though.

    -- Fade the move

    The strategy is to note the current trend of the market: forecasted to be up/down for the next week (I have a reliable source for this), scan stocks that have just had a news event AND the stock moved away from the trend (up/down) by more than 5% AND is optionable AND was in a trend for the last 30 days in the same direction as the current market and industry.

    In my view this picks up stocks that are going up or down, had a divergent move due to news. I would pick the stocks that had moves against the current market and industry's trend to consider using options in the direction BACK to the TREND. The skill will be in selecting the stocks who's move was do to bogus or weak news and will fall back to it's prior trend in a few days.

    I'm looking for news scanner sites or stock scanner sites/ tools that also tie in news events. A very good stock scanner site is stockfetcher.com but they don't have a news event tie in. You have to do this step manually in google / yahoo which isn't that bad but it would be easier to have it bundled. My husband believes he once came across something that would work but neither of us are able to relocate it.

    Any tips, tools or suggestions are welcome.

    Thanks , Lily
     
  2. Me too!

    Today Google works hard to process all my search requests for low-cost or free financial news service, available in computer-readable form and with news archive going back at least a year, for backtesting.

    Dow Jones has such service but it costs big $$$.

    The only thing that comes to mind is to screen scrape Yahoo or Briefing.com, and apply some creative text processing algorithms.