“A movement is over when the news is out” is an old Wall Street adage, cited in print since at least 1906. The price of an asset reflects current value, but it also reflects what is believed to be its value in the immediate future (such as when quarterly earnings are officially announced). By the time the official news (such as a quarterly earnings report) is out, the stock price has already moved in reaction to the news. It is then too late to buy or sell on the news because the stock price has already gone up or down.
29 June 1906, Wall Street Journal, “The Wall Street Barometer”:
It is the constant phrase of the street that a movement is over “when the news is out.”
The Technique of Short Selling;
Making money on declines in the stock market
Author: Mark Weaver
Palisades Park, NJ: Investors’ Library
“When the news is out, it is unimportant.” This old Wall Street axiom is based on a long period of observations that the tape and the market generally ...
A Treasury of Wall Street Wisdom
By Harry D. Schultz and Samson Coslow
Palisades Park, NJ: Investors’ Press
It is the constant phrase of the street that a movement is over “when the news is out.” Stockholders and intelligent speculators operate not on what everybody knows, but on what they alone know or intelligently anticipate.
The Evolution of Technical Analysis:
Financial prediction from Babylonian tablets to Bloomberg terminals
By Andrew W. Lo and Jasmina Hasanhodzic
Hoboken, NJ: John Wiley & Sons
From the Inside Flap:
“A movement is over when the news is out,” so goes the Wall Street maxim.
New York City • Banking/Finance/Insurance • Thursday, February 02, 2012 • Permalink