Stocks Full o' Nuts - Crazy Runners and Bank Makers

[Hooka]

To sell on the news relates to the event itself. You sometimes get the seeming paradox of a price reaching a new high before the event and falling lower immediately after the event, even when the news matches the forecast. The lower price comes about because the early birds take profit on the up move that they themselves engineered. The new low is usually short lived. After all, the forecast was for good news and the good news occurred, so the news was properly built in and the new high is the appropriate price.