Buying The Rumor Is 300% More Profitable Than Buying The News

Tyler Durden's picture

Authored by Daniel Drew via,

As the market meanders its way through a post-earnings, pre-Fed no man's land, I couldn't help but wonder if this was a unique aimlessness or a seasonal pattern.

The market is partly driven by quarterly earnings cycles, and one has to wonder, "Does the earnings hype always live up to expectations?" Not only do individual stocks move up and down around earnings announcements, but the entire market exhibits certain behavior as well.

As earnings season approaches, volatility picks up along with investors' expectations, and stocks rise in the first month of the quarter. After earnings season ends, reality sets in and stocks underperform, much like they are doing now. If an investor had only been long the S&P 500 in the first month of the quarter since 1990, they would be up 150%. Anyone buying in the 3rd month of the quarter only gained 50%.

In financial markets, hope is more profitable than reality.

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francis scott falseflag's picture

And starting the rumor is 300% more profitable than bying the rumor.   Duh.

Dreedle's picture

Right?  There may be a little bit of over simplification here. 

Rich Stoehner's picture

The algos trade the rumors...

francis scott falseflag's picture

You mean like "Buy low.  Sell high?"

junction's picture

What, more hopium peddling even after Obummer is gone?

By the way, paying my credit card bill online, I had to change my password.  The new minimum requirement for a password now seems to be 8 characters that includes one upper case letter, a number and a special character like $ or #.  Someone may have hacked a whole lot of identities lately and the news is being kept quiet for now.

As Comey said, you should not expect absolute privacy from the government.

Dazman's picture

The goverment don't need to hack accounts. They have secret courts and the looming threat of imprisonment.

The bastard CEOs just give in and open the doors to all of their information because they are a bunch of fuckwad pussy bitches.

Can't blame them to be honest. Until people start showing up at city hall with pitchforks demanding heads on spikes, they have to give in.


LawsofPhysics's picture


"Full faith and credit"

inhibi's picture

No, the CEO's sell the metadata to the CIA, FBI, etc. They SELL it. They make money off of your data.


If anyone's a pussy a$$ bitch its the politicians that take $10,000 'campaign donations' to fuck over the American public.

jrock's picture

As someone who works in IT/infosec, they are a bit behind in password strength but it's probably no cause for alarm. Probably.  Unless they are incredible morons, it's virtutally impossible brute force a financial institution's login.

francis scott falseflag's picture

Soon they will limit the number of intra account transfers per month to 3 with a $3,000 maximum and require withdrawals  

larger than $2,000 at a live teller with your debit card and picture ID.

curbjob's picture

300% lol, fucking pikers...

Buying the congress buys the whole cunting market !

stocker84's picture

In other news, the sun will come up tomorrow.


GunnerySgtHartman's picture

"Buy the rumor, sell the news"

junction's picture

I was writing my post before you, svs9000, posted your comment and I did not see it.  No plagiarism involved.

GunnerySgtHartman's picture

No harm, no foul.  Have a great weekend!

TheRideNeverEnds's picture

Doing either is 1000% more profitable than not buying and infinitely more profitable than shorting. The key here is you buy everything all the time and you win.

LawsofPhysics's picture

Don't you have to cash out/sell at some point?  What good is "wealth" if you don't actually do and buy the shit you want with it?

I am confused.

TheRideNeverEnds's picture

No you don't, you set the dividends to reinvest and then when you can you retire off them.

LawsofPhysics's picture

Remind us what all that "wealth" is priced in again?


Good to see another optimist.

Dreedle's picture

All of these little cliches only go so far.  The key to trading and making money every day is to follow a proven analyst.


LIke the guys at the Shep Wave. 


Sorry, but their record has been spot on for a long time. No others likethem if you ask me. 


DavidC's picture

Member for 5 weeks 5 days. Hmmm.


Barney08's picture

Why don't they just go to the Shep wave board. I don't take the time to go over there and preach ZH. F off to them.

Irvingm's picture

I think ZH and SW have some connections 


Just way too many people from ZH who promote SW. But the analysis from SW is solid.

Van G's picture


What is the difference? Shepwave analysts have been around for many decades. Good work. Their followers seem to pop up everywhere. 


Some can be obnoxious much like some of Zerohedge readers and followers.


For myself I just make money in the markets. Often times ShepWave is the only analyst getting the markets right.

Fireman's picture

There are no "financial markets". All that remains is a drooling Tio Sam, an aging meth addled psychopath gangster with fiat filth sticking out of every soiled pocket, winging a last shell game down a piss stinking back alley hoping his plantation livestock still don't get it.


The rest of the planet does!

Karma time

BingoBoggins's picture

"winging a last shell game down a piss stinking back alley"

love that line

small axe's picture

time for the biggest rumor/lie of all: "2% inflation is the panacea that will lift all boats" (Copyright B. Bernanke and J. Yellen, with ad nauseum distribution rights granted to all MSM channels)

Barney08's picture

Personally I rather Buy the Humor and Sell the Ruse

Yen Cross's picture

   lol--- BTFD had to be[the most] at least 8-900% profitable.

g'kar's picture

"Buying The Rumor Is 300% More Profitable Than Buying The News"

Didn't work out so well for Bitcoin today