The Value of "News"

[haunting]

http://www.theaustralian.news.com.au/story/0,25197,24062397-643,00.html

http://business.smh.com.au/business/down-they-go-most-vulnerable-bank-shares-20080722-3jbe.html

Just like to point out that NAB and ANZ are two of the most traded bank shares with the highest turnover today. Next time, take a bet against what you read. Screw 'em!

 

[gfresh]

Obviously you own bank shares..

 

[derty]

Analysts at Citibank yesterday changed recommendations on both banks from hold to sell, in a sweeping review of all the reasons to shed exposure to the sector

I wonder if this is an indication that the smart money wants in?

 

[haunting]

Yes, true. I don't own them, just trade them.

 

[slackjaw]

I hear ya mate. I went short on both, just 20Gs each, I'm holding onto it, hoping Ive just done my usual trick of catching the bottom of a swell, but not the overall wave. Would be interesting to hear others accounts of news trading, its not something I tend to do often myself.

 

[haunting]

SJ,

Sorry. I didn't go short today. I just took my profit. I went in a few days (16 actually) ago. I think NAB looks bad for a short.

Cheers.

 

[slackjaw]

well since I just closed these positions, time to update this thread

ANZ

sell $18.15 july 22
buy $17.01 August 5

NAB

sell $27.54
buy $24.98 (same dates as above)

Conclusion ... the news was good, but disregarded by the public, I dont even think that article made the papers, but the fall certainly did. Since none of these looked to be great shorts without the news, i had to hold on through a fair nail biting period before the news made good. Bad trading practise? probably, but in this case it paid off.