Thanks for CBA Jako - Haven't had too much opportunity to short CBA this week (I missed a couple of entries, but she wasn't talking to me loud and clear on the short side short term) - so what to do if you think the market is weak and you like trading short? How about scouring the announcements - especially market sensitive announcements that are ramped up by the news? James Hardie was my short for the week - apparently they did really really good if you don't count all the money they lost. I was watching her at the open on Tuesday - up she gaps - and the smart money were cutting them down from the get go. A very profitable day Tuesday and Wednesday. Just goes to show how smart money will generally do the opposite of what the average joe intends to do - if news is good, and retail demand is expected to be high, look out for the pros to be selling for premium prices. News can be good enough to throw price into a higher trading channel - but the end result short term is always distribution at the high - if not on the day, then the next day, or the one after that - Even if smart money are bullish they will still sell into demand for the purpose of increasing their position at a better price. Moral of the story - beware the news! News stories about why the market went up or down are supply to the media from the exchanges - its mostly BS - ie its truth spun in such a way as to suggest you act in a way that benefits the exchange and pros at your expense. Thats my rant for the week - Mitta, what do you think or should I be going to the back off the class again? Anyway, that's how I have been playing announcements lately.
