V. 19:1 (30): Q&A by Don Bright
Product Description
TRADING NEWS STOCKS
Since oil has been in the news lately, does that mean that XON and other oil companies are newsies and would not be good to trade? Or does the news have to be about the company directly before you would want to not trade it? — J.L., Salt Lake City
It is true we don’t recommend trading “news stocks,” but the news must be specific to the company. The opposite is true when underlying news (such as oil prices or the supply figures) will have a direct effect on stocks in several sectors (oil companies, oil services, distributors, airlines, and so on). The same is true for gold stocks, and any other group that trades around a commodity.
Since oil has been in the news lately, does that mean that XON and other oil companies are newsies and would not be good to trade? Or does the news have to be about the company directly before you would want to not trade it? — J.L., Salt Lake City
It is true we don’t recommend trading “news stocks,” but the news must be specific to the company. The opposite is true when underlying news (such as oil prices or the supply figures) will have a direct effect on stocks in several sectors (oil companies, oil services, distributors, airlines, and so on). The same is true for gold stocks, and any other group that trades around a commodity.
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