Many times a stock will come out with good news or good earnings report and go down because the price increase is already been factored in. So traders who bought the rumor sell on the news to the late comers.
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The old buy the rumor sell the news. How many times my hype has been missplaced.
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Learned that lesson pretty hard over the late summer when everything I would get in on news would instantly go down and then be shorted to the ground.
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