Fresh news creates fresh moves | stockbee

5/30/2017

Fresh news creates fresh moves


Stocks that release news pre market can often make one day big moves. Many of them start with gap up open. Some of them are up in post market or pre market session.

You can find such stocks by scanning for pre market moves of 2% plus on 50000 volume. Many free broker scanners allow you to do that.

Stocks release news post and pre market. Analyst upgrades tend to happen in the morning. In earnings season lot of news is released post and pre market.

Such news often leads to one day move on day of news. Sometime if the news is significant it can lead to multi week or multi month rally.

For day traders and short term swing traders news catalyst can offer a range of opportunities.

Such stocks with fresh news are called stocks in play or story stocks.

News that can affect price:

  • Earnings
  • upgrades/downgrades
  • govt policy change
  • FDA decision
  • Natural disaster
  • Political instability
  • Insider buys
  • CEO/CFO change
  • New product launch
  • New order

There are many free sources of news. If you want to catch intraday moves you need to build process loop for tracking news .

At first you will feel every news is important , but soon you will figure out what is consequential news and what should be ignored. This kind of skill building requires months of regular practice.

There are several sources of news. Some like briefings.com are paid and some like seekingalpha are free. Some paid sources like Bloomberg are ultra fast but are beyond the cost realms of retail traders.

Many of these kinds of news catalyst lead to just few hours rally , some lead to longer term trends.

Those stocks tend to be neglected and then have significant catalyst. That is the kind of move to focus on if you are looking for longer duration swing moves or position trading moves.

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