Canopy Growth Corp (WEED)

[Wo]

This was a typical buy on "rumor sell on News" investors bought in the days leading up to the election so as to sell after the election. That was the rally a couple days ago. I don't think it was because they wanted to go long. The real investors will be coming after. The ones who want a quick buck came in before the election and they are leaving now. soon the dust will settle. We traded almost 4 million shares today. More than most stocks on the TSX.V

Market stock traders buy on the rumor, meaning that they treat forecasts prepared by economists and analysts as though the event had already happened precisely as predicted. In other words, they “build in” the forecast to the price, creating the very high on the price bar that the news is supposed to produce.

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.