Quote: (01-03-2014 03:00 PM)svenski7 Wrote:
Quote: (01-03-2014 01:47 PM)WestIndianArchie Wrote:
@lebeau
I'm actually interested how or whether news affects share prices.
When I used to do patents, I'd read interesting things that should have tipped off tech stock buyers. Don't know if they did. Prices seem to be only loosely correlated with science
The only news item that I've seen with a high correlation to short-term stock price is the earnings report. Everyone focuses on last quarter's earnings versus expert estimates. Sad but true.
I'm certain you could have an edge if you were an expert at patent analysis in a particular field.
Even without the SAC Capital style insider trading.
News absolutely affects share prices, even faster nowadays and in unexpected ways based on trading algorithms.
Even social media is a driver of price changes.
Some people aren't aware that there are complex computer programs designed to read news headlines, online trending topics, etc. far faster than any human could, then make extremely fast trades based on internal decision rules.
I've posted this video in another thread, but it's relevant here: