Making money from news plays | stockbee


Making money from news plays

Last week was one of the best week for trading in 2018 due to high volatility and news plays making big moves.

SNAP was a big news play and offered a 25% move on day of earnings from open. TSLA was good short play on news after earnings making over 50 dollar down move before recovering. IRBT , CBOE, XOM, YELP, WFC were other good news plays.

Short term big moves in stocks often have a news catalyst. If you are looking for short term swings or day trade then systematic analysis of daily news offers you daily candidates roaster.

Stocks release news after hours and before market open. This kind of news can move the stock immediately and in some cases start a multi month or multi year rally.

News that tends to move stocks big often is of following kinds:
  • earnings surprise to either side
  • earnings guidance
  • brokerage upgrades/downgrades
  • CEO/ CFO change
  • insider buying
  • new product/service launch
  • analyst conference
  • new drug approval
  • govt policy change
  • SEC action
  • IBD front page story
  •  IBD New America highlight
  • Seeking Alpha pump and dump

If you want to catch good day trade moves focus on these everyday. Become an expert in reading and analyzing news. Everyday at end of the day look at stock that went up big for the day and look at what kind of news precipitated that move. If you do it for 6 month plus you will understand what news moves the market and what news to ignore.

There are many paid sources of news like Bloomberg, Briefings, Fly on the Wall and several others that give you news as it happens. Many free sources like Marketwatch, Seeking Alpha , Benzinga and many others are free.

A good news paired with good setup can often lead to explosive moves. If a stock already is setting up well and news comes in it is best setup.

Spend early morning hours pre open looking at price moving news. Compile a watch list and then focus on those stocks during the day.

No comments: