News Sources

[cpatte7372]

Hi,

OK, lets say I wanted to know where the nasdaq biotechnology index is heading over the next few days. Can you please tell me where you guys would get that information from.

Could you also let me know where you generally get your stock information from e.g. CNBC, MSN, ESignal. However, I'm particularly interested in knowing where particular sectors are heading.

Cheers

Carlton

[soylent]

Hi Carlton --

I did extensive research on this in my early days (6 months ago) and found that news is nearly useless as predictor...

News on CNBC will put a stock 'in play' and, usually, allow you to get some good intra-day action going but it's too unreliable to make it worth the risk.

I did find UPGRADES/DOWNGRADES were a playable news event. But, in the end, I didn't find even they were worth the effort. (I did a study of 100 upgrades/downgrades and built a matrix of net effect to a stock price based on that up/downgrade. Generally, I found they are worth $1.43 over a 3 week period. Just not worth the risk especially because most upgrades caused a $1-2 impulse on the first day. So, you'd have to wait for the initial excitement to wear down to make your '.43 cents' (assuming a standard wave 4 style retrace of .62)... I only analyzed the upgrades...)

As for where is BIO going (or, anything) in the next 3 days; You'll need some other indicator for that. I don't know of anything that's 100%. But, combining a couple should help you find that swing-trade.

[cpatte7372]

soylent

Thanks for getting back to me.

Could you therefore tell how you go about selecting stocks that you want to swing trade?

Cheers

Carlton

[gspiker]

I did extensive research on this in my early days (6 months ago) and found that news is nearly useless as predictor...

We have a winner! Yes, news is not a predictor. CNBC would have you think differently - but the Martha's (insiders) have often already taken the news into account long before you hear it.

Could you therefore tell how you go about selecting stocks that you want to swing trade?

You use technical analysis, esp pattern analysis of stocks price and volume over time. You will see the insiders move in or out of a stock and know that there is news long before it is announced also. Now, not all news is known before it hits, but most of it is. There is no thing as a secret in business...secrets are shared on the golf courses, in the board rooms and to your favorite stock analyst all the time.

G

[soylent]

Originally posted by cpatte7372

Could you therefore tell how you go about selecting stocks that you want to swing trade?

I pick:
- Mega cap stocks / indexes
- Look for a good 13/30/60M Advanced GET setup (type 2 divergence or Type 1 retrace)

I look through all the big stuff daily and see if it's setting up. If it is, I take it. Sometimes several days will go by w/o a reasonable risk/reward.

[cpatte7372]

Thanks guys

Carlton