The Stock News The US Media Isn't Reporting On
Oct 27, 2022This video may be controversial and may offend some of you.
I will be discussing a possible news release that could impact the market and specifically several stocks once the news becomes widely known. All I ask of you is to listen until the very end, and then make up your own mind as a thinking trader.
If any of you have traded at all you're aware news affects stock prices, especially bad news. So here is some bad news that maybe be coming down the pipeline.
When bad news comes out, stock prices plummet in minutes.
Notice the SPY when the latest CPI announcement was made - a sudden high volume and the immediate reaction to what was perceived as bad news.
Anytime you see a pattern with unusually high volume and a gap either up or down that's when you need to find out what's going on. There may be a trading opportunity in there for you.
Why Do Stocks Go Down With Bad News?
When you bad news announced, sit and ask yourself some questions.
1) Will the news affect the whole market? An example is when COVID hit the USA the news cause the whole market just to plummet.
2) Is the news stock specific? An example would be when a company entertains a takeover bid, it only affects that company and it's specific stock.
3) Will the news affect the industry that stock is a part of? Sometimes the news is about just one stock. But stocks in the same sector or industry are also affected.
In each scenario, you would approach the trade with slight differences.
For instance, Stock A has great news and gaps up with a lot of volume. and Stock B which is in the same industry gaps up also but with a lot less volume.
I would think to myself Hmm. Stock B gapped up for no reason.
Chances are that traders that own that stock will see it as an opportunity to just grab some profits, causing the stock to go right back down.
I would buy a put and capitalize as the price goes down.
This is one of the main reasons I do a quick and dirty search every morning after the market has been open I'd say about an hour, maybe an hour and a half.
I'm looking for stocks with unusually high trading volume. When I find one. I do some quick research and decide if there's a good possibility of a trade in there.
Here comes a slightly controversial part of this article.
I have trading buddies all over the USA and the world and those trading buddies are always sending me news articles about different companies and about different events in their countries. Lately, there have been some rumblings on the foreign newscasts about Pfizer and Moderna. Both of these companies developed a COVID vaccine.
Now, some of the European governments are questioning whether the science behind the vaccine is legitimate or just fake science.
When I did a quick search on the internet, I couldn't find any news releases in the US about these things. I did find the information on the foreign news markets though. but I'm still going to keep my eye out and if they prove out, I will be trading based on the news.
The first video was a clip of a European Parliament Committee they were questioning a Pfizer executive about their vaccine. The hearing made Pfizer look pretty bad. They kept asking if they had done any testing. And the person testifying finally said no they hadn't. They just had to get it out fast.
The other news that hit about 11:30am On October 14, my friend let me know about it, but again, I wasn't able to verify it on the US News reports.
The news was about Italy ceasing vaccines from Pfizer, canceling their contract and requesting refund on what they were calling fake science.
I'm now watching all the COVID vaccine companies waiting for the apple just to fall off the cart.
I believe when it does, those stocks are going to fall fast and they're going to give me a chance to grab some profits.
Now I will not trade this until I actually see it happening. My intention then is to buy PUTs about 30 days out.
I have no idea if this thing will blow up or if it will even you know we just don't know at this point. But if it does, it's going to be big out there.
This is a beauty of belonging to Investing Buddies. We're a group of traders who have each other's backs. People posted on the forum all the time, they email each other and they even call me sometimes with something that just popped up.
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