S&C Magazine Current Contents Q & A Aspects Of Trading ACTING ON NEWS: FROM DON BRIGHT
ACTING ON NEWS: FROM DON BRIGHT
- Details
- Parent Category: Q & A
- Category: Aspects Of Trading
- Written by Don Bright
Over the years, I have received dozens of questions about “news” stocks, news in general, specific news items of interest to traders. One of my top people, Bright Trading remote manager Cash Coyne, has put together a presentation he will be using in our training programs. Here’s a portion of it.
How to prepare for and act on news in your trading:
- Stay on top of the news
- Know how your stock/sector may be affected
- Don’t get blindsided
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From a trading perspective, there are really only three types of news:
- Entire market
- Industry moving
- Stock specific
Everyone should be aware that news is not limited to current hot topics or breaking news. Much of it is put forth on a regular basis, with varying levels of priority.
Regular events (premarket):
- Nonfarm payrolls
- Initial claims (weekly)
- Building permits
- Housing starts
- Producer price index
- Consumer price index
- Retail sales
- Unemployment rate
- Adp employment
- Durable goods
- Personal income/spending
- Import/export prices
Regular events (intraday):
- Pending home sales
- Existing home sales
- New home sales
- Crude and natural gas (weekly)
- Consumer confidence
- Michigan sentiment
- Ism services
- Ism index
- Factory orders
- Auto & truck sales
- Consumer credit
- Wholesale inventories
- Leading indicators
Other scheduled events:
- Fed speeches — chairman and governors
- Treasury speeches
- Presidential speeches
Nonscheduled events:
- Big investors speak (Warren Buffett, activists)
- Major company Ceo making forecasts that differ from expectations
- Bond rating companies announcements
- International — major European Union announcements, war, aggressive nations
A sample of scheduled events affecting a market sector:
- Oil inventories: Producers, drillers, equipment manufacturers, shippers, airlines, rails, trucking companies
- Natural gas inventories: Producers, pipelines, coal manufacturers, rails
- Building permits, housing starts, existing home sales, new home sales, pending home sales: Builders, lenders, material manufacturers
- Auto & truck sales: Manufacturers, parts manufacturers (Oem, aftermarket)
- Retail sales: Retailers
- Industry conferences
- Earnings surprises by an industry leader for that stock sector
Traders need to keep abreast of all news items that affect their positions.
I asked my brother Bob which events he felt were of the highest impact to the overall market. His responses were initial claims (weekly), unemployment rate, nonfarm payrolls (regular events), consumer confidence, and crude & nat gas (weekly).
