Thanks sig!
For non directional trading I am simply using the model. Looking at the news is more for comfort. For directional trading I pour over various documents including news.
I could use jump instead of news. The problem is, many small cap companies dont trade much over night when news is announced. Within the first minute of trading hours the stock moves 5% to reflect the anouncement. The jump will be understated as we cant get out in the first minute on a small-midcap stock
Thanks for clearing this up. I see what you mean about the small caps