Tweet *****Headlines are a marketing tool. Did I say something new to you by emphasizing that? Headlines are used to manipulate not just your opinion but also the markets. No matter what you buy and I don't mean just equities, but it's exactly where I got educated about the nature of the "beast".
Many years ago I became fascinated about why and how people react stupidly to bad information. Then and until the past ten years I was totally naive about how the media gets it's news. I was totally naive about media feeds, that is until, I became a media commentator/feeder myself to a trading room where I found that not only are headlines misleading, but also that the headlines they feed most often is the news that gets reported to the masses. Often the real story is not only buried in the story they feed, but more often the news they don't wish for the masses to pay attention to is not scrolled nearly as often on the headline stream.
Today I had to opportunity to tape the $AAPL news feed and how the headlines were streamed for people to pick-up and pass on. $AAPLEarnings Play and News. The news they wished to report were most often presented and the ones they wished to pass over were less often shown. It's that simple.
Beyond that piece of trivia, also pay attention to the news body and see where the real story lies; about 1/3-2/3 down is often where you'll find it most of the time. Believe it or not I remember a couple of stories where it did not appear until the closing paragraph. If you're a writer, you know that is supposed to be the summation, and not the news, so it is often disregarded in a quick read.
Besides a news feed, I get highly suspicious about any stock that is halted, so the lesson of the day and the $AAPL of the day goes to the ones that held back until the real story came out. Those, as my subscribers found out, are the ones best left to stew until the meat is cooked off the bones. After which the news (or meal) is much more enjoyable to understand, savor and digest and then something real to talk about.
Happy Trading, Living and Dancing
The Daily Pick - $AAPL
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