Time Delay: News & Charts

Discussion in 'Trading' started by led-y, Oct 24, 2009.

  1. led-y

    led-y

    Hi,

    as careful person I try to understand the "relation" between specific news and the consequence for the values. That's why I go through lots of stocks' histories (news as well as charts/value).
    But in contrast to my expection I worry about the slow reaction of traders if I can say it this way ;-)
    Very ofter, I can find great company news, e.g. successful new contract is concluded on 10th of a month. But ofter the value is decreasing same day and next days, too, and takes sometimes 1-2 weeks before it comes to the same value like on the day of success news alert.
    One explanation might be, that some trader's target values are reached and that's why it sends a "sell" signal for their shares - but is it really wrong to expect the chart to raise on the day (or at least next 2 days)?
    The opposite is logical and can be followed at most charts. If there are bad news, legal issue messages or failed contract discussions, then the charts are falling at least a bit.

    Can You please tell me why it does not behave the same for good company news?

    Btw. it's the same phenomenon with analysis recommendations. Even if 5 different magazines, investor letters or analysis experts publish their "buy" message, it takes usually more than a week before the readers follow the suggestions.
    Does no one trust in (free) analysis from banks, magazines or other expert? Or did I watch the wrong stories?

    My attempt to find out this is based on German stocks and I do not think that the market there is "slower"; so I guess it can be followed same way in international market, isn't it?
    Based on the information that I found out, it does not make sense to do day trades or to try to get an advantage of being one of the first who reads news or adhocs. I hope I am wrong with this... ;-)

    Is there a really useful and not only a clap speaker author's book that has helpful information that make me understand and profit of being up-to-date? If it is a blog for this topic, it will be nice, too, for me; but all my research ended with stalemates.

    Thanks for reply and regards