Events and stock prices
Sometimes, you can hear: “what's the point, at a meeting of company X, they showed a certain device and shares of company Y" fell "by 1.3%." With the figure that's right, but what's the catch?
Consider today. Sun deal and Oracle approved the European Commission. The analyst is smarter and can immediately go to watch stock prices, for example IBM - wow! -1.4%. Here it is! Further more: Novell - -0.42%! Microsoft - -1.91%! Victory!
Sober readers in this case should look at the shares of Oracle: -1.72%.
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What is it? And this is the usual reality. Many people remember the release of Radio-T, in which at the end of the program it was mentioned that at the CES conference, after showing HP Slate, MS and HP shares “fell” by some percentage values. It was declared with intent - here it is! However, no one said about the Apple stock, which fell at that moment two times stronger. On this day, all stocks collapsed and the NASDAQ was in the red. And of course, the CES events have nothing to do with it.
The moral of this note is this: do not assume that the market is highly dependent on some single events. Even very large ones rarely roll or lift something. Only unexpected announcements, force majors are capable of that. Of course there are exceptions, I would be curious to look at stock prices after the Apple event. Its shares have grown strongly lately in anticipation of the announcement of the tablet.
Bottom line: henceforth, when they say to you: “Y shares have fallen!” Ask to demonstrate the stock price X, maybe it fell even lower?
Consider today. Sun deal and Oracle approved the European Commission. The analyst is smarter and can immediately go to watch stock prices, for example IBM - wow! -1.4%. Here it is! Further more: Novell - -0.42%! Microsoft - -1.91%! Victory!
Sober readers in this case should look at the shares of Oracle: -1.72%.
')
What is it? And this is the usual reality. Many people remember the release of Radio-T, in which at the end of the program it was mentioned that at the CES conference, after showing HP Slate, MS and HP shares “fell” by some percentage values. It was declared with intent - here it is! However, no one said about the Apple stock, which fell at that moment two times stronger. On this day, all stocks collapsed and the NASDAQ was in the red. And of course, the CES events have nothing to do with it.
The moral of this note is this: do not assume that the market is highly dependent on some single events. Even very large ones rarely roll or lift something. Only unexpected announcements, force majors are capable of that. Of course there are exceptions, I would be curious to look at stock prices after the Apple event. Its shares have grown strongly lately in anticipation of the announcement of the tablet.
Bottom line: henceforth, when they say to you: “Y shares have fallen!” Ask to demonstrate the stock price X, maybe it fell even lower?
Source: https://habr.com/ru/post/81527/
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