Q&A: What makes majority of investors to enter the market-a news release or a technical buy/sell signal?

Question by rocky9281: What makes majority of investors to enter the market-a news release or a technical buy/sell signal?
In other words,Does the market react more to a news release or a technical buy/sell signal?

Best answer:

Answer by shags1_23
The mass populous reacts more to news releases. But don’t expect the people to react in a rational way to the news. Sometimes good news causes prices to fall. There is a saying, “Buy the rumor; sell the news.”

Technical buy and sell indications are determined in different ways by different people. If four different technical analysts look at the same chart, you get four different opinions about what’s happening. Technical analysis is an art based on a science. Keep in mind, any type of report by a “master technician” is nothing more than news.

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One comment to Q&A: What makes majority of investors to enter the market-a news release or a technical buy/sell signal?

  • robe  says:

    Both. Technical signals are moving the market recently, and a news release tends to add momentum. This morning is an excellenct example. Meredith says GS is going to outperform ahead of earnings, and the market buys in.

    Were we due for a technical move up? Yes. Would it have happeneded, or happened to the degree it did without her comment. I don’t believe so. A good test is to see what happens tomorrow. I believe that, unless GS blows their earnings away, people will sell off, and the market may have a down day tomorrow net-net as a result. On the other hand, is it in GS’s best interests to maximize their quarter beyond a certain point? Will they sandbag to protect themselves from the ire of the government? These will all be more or less apparent tomorrow.

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