The Signals SPCE Gave Before This Week’s “Sell the Rumor” Sell-Off

Hey Guys and Gals, It's a market phenomenon that dates back to the early days of trading and to this day remains one of the more difficult concepts for many new traders to grasp. "Buy the rumor, sell the news" is an age-old mantra that has left countless traders holding the bag. The emotion often leads novice traders to ignore the mean reversion forces that usually cause a stock to fall after anticipated news has been announced. If you think about it, when a company's stock price rallies on expectations of a corporate development that promises to strengthen the company's financials well into the future, it can seem counterintuitive to sell the stock when the news becomes official. As traders, we must respect the fact that stock prices move cyclically, overshooting some central mean to the upside and downside as a long-term price trend develops, in a manner that resembles something similar to what's shown on Figure 1 below. Figure 1

Whether it be the anticipation of strong sector-wide earnings, a beneficial change in government policy, a stock-friendly decline in interest rates, or the rumor of some new revenue-generating business line, there's no shortage of fundamental narratives that cause these shorter-term overshoot cycles to develop. The key thing to be able to recognize as a trader is when these cycles have run their course. I'm about to show you how to identify when a rumor-driven price rally may have run its course to the point where, at a minimum, placement of high-probability time decay (theta decay) trades should be considered. Click here to continue reading...

Jason Bond

DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at https://ragingbull.com/disclaimer/ FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. RESULTS PRESENTED NOT TYPICAL OR VERIFIED.RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial.However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. Employees, owners, and other service providers of Ragingbull.com, LLC are paid in whole or in part by commission based on their sales of Services to subscribers. WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication.

Unsubscribe RagingBull.com, LLC 62 Calef Hwy #233 Lee, New Hampshire 03861 United States (833) 265-1271