Aug

19

Out of Office Notice

Teresa Lo @ 10:27 AM | | 3 Comments 

Teresa is out of the office today. Trading Ideas and our Google Gadget will not be updated until after the close on Wednesday.

Questions and Comments

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  1. Dan on August 19th, 2008 5:41 PM

    Based on your years of experience trading, do you have a framework or approach for how to determine whether news is already cooked into the market (i.e. the market has already figured out what the news is telling us and you would expect little if any impact) as opposed to new which will move the market?

    For example, at the end of the day today, CNBC reported that Goldman cut its estimates on financials. Briefing.com had a more detailed explanation.

    In the context of the question, is this something we already know, something we thought we knew but this confirms it, or something new which can move the market, and does that translate into developing a trading plan around one of the financial index ETFs?

  2. Dan on August 22nd, 2008 5:04 AM

    It looks like the markets answered the question in that nothing significant happened so the news was baked in. Maybe its only amusing to me, but i liked Citibank’s response to this by cutting its estimates for Goldman yesterday.

  3. Teresa on August 22nd, 2008 1:12 PM

    I think it goes back to some simple questions such as what is the price action going into the event? Has it been rallying into (anticipated) good news? Has it been dumping into (anticipated) bad news? From there, there are only a few scenarios possible, and we can trade accordingly.