US stocks: When bad new is good news/vice versa

T

TradeBlazer

This has been going on for about 18 months or so. News reports come out with bad news so the market rallies and vice versa when the news is good. Basically the markets have been rallying on bad news for so long that I wonder how much longer this can go on? It's going to catch up to us in a very bad way and bite us in our azzes. The logic is stupid and cannot continue.

I know the reason why: it's about interest rates being high. But the outcome is the same--rallying on bad news.
 
TradeBlazer said:
This has been going on for about 18 months or so. News reports come out with bad news so the market rallies and vice versa when the news is good. Basically the markets have been rallying on bad news for so long that I wonder how much longer this can go on? It's going to catch up to us in a very bad way and bite us in our azzes. The logic is stupid and cannot continue.

I know the reason why: it's about interest rates being high. But the outcome is the same--rallying on bad news.
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Traders don't care whether the news is good or bad.

To A, the news might be good.
To B, the news might be bad.

Also good or bad is RELATIVE.

Also, the market could move
- before the news
- just when the news is released
- after the news
- or various combinations of the above

Also ......

And also ......



You don't need to crack your head trying to understand why bad news is good news or vice versa.

Just focus on the chart and don't try to crack your head with a hammer and chisel.
 
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Ive learned to tune it all out and just focus on managing my trades.
Whether good news is bad news, or bad news is good news matters little to me.
I don't care about the Fed. I don't care about Trump. I don't care about basketball. I don't care about Diddy.
 
TradeBlazer said:
This has been going on for about 18 months or so. News reports come out with bad news so the market rallies and vice versa when the news is good. Basically the markets have been rallying on bad news for so long that I wonder how much longer this can go on? It's going to catch up to us in a very bad way and bite us in our azzes. The logic is stupid and cannot continue.

I know the reason why: it's about interest rates being high. But the outcome is the same--rallying on bad news.
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"Rally on bad news"... is an important aspect of the market's "current psycho". This is precisely why a trader needs to know "Price TA"... in an environment like this, it's unwise to get bearish on the market until it "does something which is actually bearish". The market won't even possibly become genuinely bearish until it takes out a significant support.

FWIW....
 
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SunTrader said:
Saying markets react to good/bad news without giving context/examples is "dog chases car" irrationality.
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%%
OK\SACremento Bee broke the bad news\mountain kills a 21 year youngman;
they kill by jumping down +breaking necks with 2 fangs.
BIG mistake to fire Fish + Game director for killing a lion out of state LOL.
Strong market , MAR comes in like a lion/ out\ like a bloody passover lamb.
Short week \good Friday. NOT a prediction.[.30-06,.357,.44 mag even a.22 long or .22 short stops a lion]
Good day to you:D:D
 
It's a bit strange how the stock market sometimes reacts the opposite way to what you'd expect, but it's all about what investors think will happen with interest rates. In my opinion, it's important to keep an eye on the big picture and not get too caught up in these short-term ups and downs.
 
That's what I need to get better at,seperating the wheat from the chaff. Every day some stock gaps way up on what is supposedly good news,but is it really goods news or just some bullshit fake news? I try to let other traders/investors tip their hand but even that is tricky.
 
TradeBlazer said:
This has been going on for about 18 months or so. News reports come out with bad news so the market rallies and vice versa when the news is good. Basically the markets have been rallying on bad news for so long that I wonder how much longer this can go on? It's going to catch up to us in a very bad way and bite us in our azzes. The logic is stupid and cannot continue.

I know the reason why: it's about interest rates being high. But the outcome is the same--rallying on bad news.
More...

The market was rallying on allegedly bad news all throughout the 2010s - except it couldn’t have been that bad, since earnings grew steadily even as the Fed was able to keep rates at zero.

Things are more precarious now; FI yields are high and gradually rising, corporate earnings are inflated by gigantic federal deficits, and corporate net interest costs can only rise. With pretty much all speculators on the same side of the boat, we’re one bad report of the wrong kind away from a flash-crash situation.
 
DayamiMoon said:
It's a bit strange how the stock market sometimes reacts the opposite way to what you'd expect, but it's all about what investors think will happen with interest rates. In my opinion, it's important to keep an eye on the big picture and not get too caught up in these short-term ups and downs.
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%%
It is strange.
But its really more complex than any one or two traders or 150,000traders-investors; many people dont use debt much.
I bought REALTY [mostly thru MLS REALTORS]+ made profits,20 years @ 10%average APR;
but much better average RE prices + supply + demand .
So much news is done by talking snake media;
like one market maker said ''you will most likely get the news before I do'' He has more important things + people to watch.
Good post, Mr D Moon:caution::caution:
 
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