Using TA and news together...
One subject I would like to talk about is using TA and news together. You don't even need to read the news report to know how it turned out. Just look at the TA after news hits. A big drop? really bad news. A mild rise? Everything going as expected with a encouraging future.
Someone on this board once said that it was the news of the EC loan that started off the big September rally and not TA. Well I bought two or three days after the news and made a lot of money. Why did I buy? I didn't really understand the significance of the EC loan. I didn't need too. Why? Because TA told me just how significant it was. After the news hit the stock spiked 20% in one day on huge volume right after the news. I thought gee, that news must be real important. Then I waited a couple of days. Why? Because it takes a day or two for the investors to do DD. I wanted them to do DD on the loan. If the DD was bad and the loan wasn't as good as everyone thought then the price drops in the next day or two after the news and we are right back where we started. If the DD is good then they add more money to there shares. The price held and rose over the next couple of days and I bought in!! Based on the huge volume over three days I wanted to buy in with a double share. I didn't though. When we broke a 52 week high, I doubled my shares and made a lot of money.
So now I am watching the TA as Solomon has all of these meetings in Sweden. The TA is going up!! The volume is a little light though. The news is good but not big. Tomorrow will tell the real story because heavy hitters are listening to Solomon today. I don't need to know what was said behind those closed doors. I only need to watch the stock price tomorrow to see if it was good or bad news.
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