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Re: runninamuk post# 5963

Friday, 06/13/2008 11:51:14 AM

Friday, June 13, 2008 11:51:14 AM

Post# of 35619
I'm NOT saying news events don't matter or that stocks don't respond to news. I'm also NOT saying you can't apply some timing methods and timing tools in timing the market or in timing trades in particular stocks...

I am saying that you can't use market timing to predict "exactly" when a particular bit of news will hit and drive a stock higher with a high degree of precision. Nor can you predict exactly what the impact of a particular bit being announced will be until it is out there... as how a bit of news is positioned or postured in the release can alter the response. Use really mucked up language no one understands and you'll just leave people scratching their heads. Spell it out in terms of impact on the business, and you get a different impact.

There are predictable market functions in anticipation, recognition and response to news... with responses conditioned by expectations and by how close to expectations the actual announcements hit. Under perform relative to expectations and good news gets a negative reaction. Over-perform relative to expectations, and good news gets a good reactions... a pause to absorb the difference... and a better reaction over time as the breadth of the impact is absorbed by a wider market.

I agree with those posting that news of completing the financing will likely drive these shares higher... I'd agree, too, that you'd prefer to be in before that news happens, but also should have opportunities after the news is absorbed to ride the long term impact...