why does a stock move several days after its news?

Discussion in 'Trading' started by cashclay, Nov 7, 2018.

  1. cashclay

    cashclay

    If all traders are in tune with the latest how can they not see the news??
     
    murray t turtle likes this.
  2. News may have an impact on a decision to buy or sell but technical signals may not align.
    For example, good news may decide a savvy investor to buy, but they will await for confirmation signals.
    If a sector/index is in free fall, it is usually best to wait.
     
  3. cause people are buying and selling it?
     
    murray t turtle and themickey like this.
  4. tomorton

    tomorton

    Because maybe after all markets are not 100% efficient.........?
     
  5. Unless you have "up to the moment news/squawk" so that you can jump on the trade very quickly.... suggest you forget about "trading the news" altogether. What you've observed as "delayed reaction" to "the" news may not be that at all.

    Whatever reaction there is to the news, it will be reflected in the charts. You don't need to know "why" when it's time to make the play.
     
    nooby_mcnoob likes this.
  6. ZBZB

    ZBZB

    Google post earnings announcement drift. There are a number of academic papers on the subject publically available. Large accounts take time to accumulate a position.
     
  7. TrendSpider_Zach

    TrendSpider_Zach Sponsor

    This happens a lot especially for small cap stocks simply because people are not paying attention to them as much. Big blue chips like FB and AAPL move immediately because they are popular stocks with a lot of volume and liquidity. For these small cap stocks most traders won't touch them until they have a certain amount of volume in them to make their trades actually profitable.
    Hope this helped.
     
    themickey likes this.
  8. Yes, and on small caps, scalpers often have a large influence to drive direction the opposite way.
     
  9. d08

    d08

    Most likely there's another piece of news that's not yet public or they aren't buying due to the news at all.
     
    murray t turtle likes this.
  10. The same news (and financials) can be interpreted many ways.
     
    #10     Nov 8, 2018
    murray t turtle likes this.