Mid day update

The late morning - early afternoon trading has been essentially sideways. Currently the major indices are holding up well so far. Rebel Trader portfolio swing trades NTGR and WDC are up nicely.

But things won't be quiet after the market closes.. Today after the market closes we will be getting earnings reports from Yahoo (YHOO) and Intel (INTC). One thing I am concerned about regarding Intel is that the price has been running up the past few sessions in anticipation of a good report. This often leads to what is called "sell the news". Even if the numbers are good those that have been buying it up ahead of the numbers being released will sell off on the influx of new money coming in. It is always a battle with existing holders wanting to cash out and new buyers (who were waiting for earnings numbers to come out)wanting to buy in. Many times the numbers of sellers outnumbers the buyers in the short term and the stock price falls. If you ever watched a company release very good earnings numbers and then wonder why the price fell afterwards it is because of the "sell the news". Another way to look at this is that the numbers the company releases are already "priced in" the stock by the time they are released.

I wrote an article on "sell the news" some time ago, I will try to locate it and post it to the board tonight.