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® “Home-Study Course” Study Manual Page 208

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When good earnings do move the market higher, the media will say
something like “stock ‘XYZ’ moved higher today based on good
earnings.” If the earnings are good and the market sells off, the media
will say something like “traders bought on the expectations of higher
earnings, but sold on the news (actual numbers).” The media always
has the answers, why? Because they are looking at the market from

hindsight which is always 20/20!!!

There’s a good way to view news if you want to at all. This is an
“Advanced Technique”. If a buy signal is generated, it is ok to see if
some positive news event came out that produced the buy signal.
Basically just viewing the news headlines will be enough to tell if the
news event is favorable or not. Don’t over study the news event, or try
and determine the quality of it because by the time you do that, you will
miss the trade!

Just realize that the new information coming into the market is a
favorable news event most likely causing traders to buy.

By looking at volume you will be able to tell the QUALITY of the news
and the price increase or decrease will tell you the SIGNIFICANCE of
the news. Some traders, myself included, don’t really care to know the
news. As long as I see volume and prices climbing, I know a favorable
news event has occurred and I really don’t care what it is. The price

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