In most instances, the above-mentioned may be the case provided
- the good news have not been discounted by the market yet and
- that the prevailing market sentiment is still bullish.
After all, in a bull market, all good news are regarded as bullish news.
On the contrary, in a bear market, good news may not necessarily cause the share price to rise.
In a bullish market
If good news:
- share price will rise
- if good news already discounted, share price will not rise.
In a bearish market
If good news:
- share price may fall
Ref: Making Mistakes in the Stock Market by Wong Yee
No comments:
Post a Comment