[wsam29]

My approach, if he is to speak , just watch price action and volume, the smarter people who knows what the heck he's talking about will lead the way.

I not only try to keep trading simple, but I'll dumb it down to my level of understanding.

[notouch]

The next one is coming up this week. It'll be interesting to see if the market reacts the same way.

[thetradingdoctor]

In response to something ( Bear hedge fund blowup, INTC, glitch or worst possible scenario which is no news), ES now down 8.5 on Globex.

Thanks

Doctor Janice

[kuokam]

Are these Bernie's testimonies the most important news to trade? I never traded one, but will make sure to try the next. So far I have traded but the rate statements and some others like nfp, cpi and ism. And crude oil stocks when I remember.

[juniorh]

As caveat I think newbies should not be trading the news until they get a good few years under their belt.

On the otherhand I personally use Ben Lichtenstein's traders audio s&p 500 squawk box broadcast to get a context of how the locals and commercial traders on the trading pit floor are reacting to major news and I'll take a position in their direction if there is conviction in the move.

[kuokam]

Originally Posted by juniorh »

As caveat I think newbies should not be trading the news until they get a good few years under their belt.

On the otherhand I personally use Ben Lichtenstein's traders audio s&p 500 squawk box broadcast to get a context of how the locals and commercial traders on the trading pit floor are reacting to major news and I'll take a position in their direction if there is conviction in the move.

How and/or when do you know the conviction is there? Sure you've got some signal for acting?

Thanks
Kuokam

[Trotta]

I too would suggest that generally a trader avoids trading the news unless you have adequate experience under your belt. Rather an astute trader would be focusing on deciphering how the news is being interpreted by the market. To quote

“All media exists to invest our lives with artificial perceptions and arbitrary values” Marshall McLuhan, (1911-1998)

With this in mind I believe the news is often a misdirection to what the smart money is doing or simply elaborate chit chat to fill the void of airtime.

Got this guide to a trader interpreting the news from an article i read recently:-

The following table from an article "How to trade the news" at iTradePod displays the basic news/market sentiment relationship:-



[LT Direction News DT Direction Sentiment Indication

1. UP BEARISH UP VERY BULLISH

2 UP BEARISH DOWN NEUTRAL; EXPECTED

3 UP BULLISH UP BULLISH

4 UP BULLISH DOWN VERY BEARISH

Hope this helps.

[juniorh]

Originally Posted by kuokam »

How and/or when do you know the conviction is there? Sure you've got some signal for acting?

Thanks
Kuokam

Koukam,

An example of typical directional conviction is when Ben mentions that Locals are stuck Short with Commercials raising Offers (going Long).

At that point I am usually already Long (depending on the Market Profile type of open) with the Commercials and will add further portions if/when Ben shouts out that the Locals have reversed their prior Short bias to join the Commercials on the Offer, a heads up of further momentum in the upward price action.