To start the week news arose that Microsoft would not be the company buying TikTok. Rather Oracle would be the new hero. Darnel made a post about this yesterday. A logical action to carry out after hearing this would be to short Microsoft right? We all thought so too, but today Microsoft had other plans. The tech giant finished the day up about $1.50, while the overall market finished significantly green to go along. My theory is this; there is a time and a place to use individual news in trading. When there is high volatility especially after the massive drop the market has been taking recently, the market tends to moves as one. For example, all FAANG stocks will be either green or red. They wont move individually. My point here is individual stock news wont tell you the whole picture for how a stock will move in these highly uncertain moments. Follow the overall market trend and make trades based on that for the time being, because that is what we are seeing.
– TJ Brescia