One Rule of Thumb on Trading on the News

by Tom Murcko
Rule of thumb on Wall Street: After a company has warned on earnings, it doesn't take much good news to push up the stock. This is because bad news is rarely an isolated incident, and when there's bad news, more bad news often follows. So the Street tends to be pessimistic when bad news is reported, and assumes that more bad news is on the way.
Tags: news
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