Check out this sudden move in The Gap Inc (NYSE: GPS) which started at 2PM EST. 10-minute chart:
I guess CNBC reported that they were going up for sale, which the Gap representatives won’t confirm.
News trading sure can be lucrative sometimes… I wouldn’t want to start watching CNBC again, or anything… no amount of profit is worth that! I used to leave it on during the day, but I am so much happier now that I’ve stopped. Still, maybe one day I should try leaving a news feed up, and see if I can get any action off of it. I’ve never tried to do that, before.
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| GPS |  |  |  |
January 8th, 2007 at 1:44 pm
That’s a pretty crazy reaction. I’m impressed that you’re even considering jumping into that move. You’re a braver man than I!
January 8th, 2007 at 1:49 pm
Ouch. Check the 1-minute chart. Is there a trade-alert thingie that would have caught that for you?
January 8th, 2007 at 1:57 pm
@Tyro: well, I’d prefer to jump ahead of the move, but near the beginning would suit me fine.
@Bill: I had the same thought… it seems like the kind of thing I could try to catch with trade-ideas, if it would inform me quickly enough. I don’t know if it does any 1-minute resolution reporting on volume surges, etc.
January 8th, 2007 at 2:30 pm
Yeah - that’s basically how I like to trade - totally without any regard to news. Let the real-time scans alert you. The important thing is the price and volume action - the buying and the selling. If the same thing would have happened without any news, wouldn’t you still want to know about it?
January 8th, 2007 at 3:24 pm
I made sure I put that down as one of my trading rules. Never listen to anything on CNBC.
January 8th, 2007 at 7:58 pm
Maybe try listening to CNBC and once the main move is over, fade it!! I’ve done that a few times and it works. But handle with care as sometimes the crowd can be crazy for longer than you can remain solvent. http://lauristonletter.blogspot.com
January 9th, 2007 at 7:11 pm
“Yeah - that’s basically how I like to trade - totally without any regard to news. Let the real-time scans alert you. The important thing is the price and volume action”
I agree 110%
From a chat log today:
(Jan 09-12:03) Muddy: we mentioned FMDAD yest,steadup near 2 now
(Jan 09-12:03) Muddy: old symbol FMDAY
It ran to a hod 3.67 on big volume from that $2 cross.
I knew of no news on it at the time except that it had changed symbols in the last few days.
One other 2 hours later:
(Jan 09-14:08) Muddy: FORD 4.58
(Jan 09-14:08) Muddy: low floater,moves sometimes
(Jan 09-14:27) Guest_583590: FORD why the sudden spike I don’t see news
(Jan 09-14:31) therumpledone: It is better to be more interested in the market’s reaction to new information that in the piece of news itself.
(Jan 09-14:31) Muddy: FORD near 5
(Jan 09-14:32) Muddy: yes,i agree
(Jan 09-14:36) Muddy: HOT ROD FORD mil shrs.
It ran from that 4.58 when i saw volume coming in to a hod 5.30
1 mil shrs at the time on a 166k avg.vol stock.I knew of no news at that time and still don’t.
I’ve traded many many years and these kind come along almost everyday.
Price and Volume action on the ones you know.