Is news necessary to trading?

Here is another great intraday call on fly on the wall today.SWFT upgraded by A.G. Edwards at 11:49.Stock was at about $15.65 when the call was made and ran to as high as $16.19,representing a 3.4% move in a few minutes.
 
I think that, more often than not, the "news" is a lagging indicator. That's because information unknown to us is often acted upon by larger, better-connected interests before it becomes "news" to us.
 
Important news that breaks intraday sometimes has a much larger follow-through effect on price since it's harder for people to process new headlines while the market is trading. We've created filters for people that identify intraday events and used technicals and other quantitative methods to attempt to gauge the importance of a particular news release. Being able to quantify news impact in real-time, though, is unbelievably difficult. Albeit, it's a extraordinarily interesting branch of artificial intelligence and one with a high degree of potential reward. - Rob
 
Quote from RobertMcLister:
Being able to quantify news impact in real-time, though, is unbelievably difficult.



Absolutely correct. It goes along with the old saying about one man's trash being another man's treasure. The relevance of a news event is most often interpreted differently by each individual. Some news is just flagrantly and obviously going to impact a stock or the market, but I think it's usually hard to know how to play most "news".
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i find it very interesting that news shocks happen along the lines of least resistence, or shall we say the prevailing trend...but how shocked should i be? humans perceive information, they act on it, and the market is set in motion....the news comes out to the public (it is released) and the ensuing break occurs.

remember those 'fat finger' trades last summer? inadvertantly adding an extra 2 zeros...lol....well, BOTH of those very large temporary disturbances in price happened WITH the trend, not against it....funny stuff...news tends to do the same :)

i guess what alot of people here are saying is that some of us who are more focused on making money from the movement of prevailing trends aren't so interested in when the public gets its news (or the explanation of an event for that matter)...since the public is generally wrong, over time it doesn't make us much money you see? :D
 
In my opinion, news is used by market makers as a rationale to mark the market up or down. After all, if you look hard enough you can find plenty of good or bad news just about every day. I look to fade these "event driven" days. Just look at todays end of market activity in the ES. Did you see more selling or buying in the last hour? For tomorrow's market, I will wait for confirmation, and look to fade the crowd. Best Regards, Steve46
 
Quote from Baruch:

Thank you.

I am very surprised that so many traders don't want to follow the news.
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volume/trend + news are some of the most important factors in trading... IMO...

Quote from steve46:

Just look at todays end of market activity in the ES. Did you see more selling or buying in the last hour?
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couldnt it be profittaking off of shorts and covering??? i mean c'mon its not like the mkt went from 160 down to positive...
 
Q

Neal: If it looks like a duck, walks like a duck, and quacks like a duck,it must be a chicken. Is that what you're saying?

Doug: How many times have you told that a piece of news is bullish, only to find a few weeks later that the same news is now bearish. Welcome to the world of smoke and mirrors. ... ... ...

--- Trading Chicago Style (by Neal Weintraub)

UQ
:confused:
 
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