By Sell Puts
I just finished reading an article by CNBC covering the topic of false buyout rumors being 100% false this month. The article started off well stating, out of the "74 rumors this month, not one has materialized"; fine that is standard. The "chowder" mill is always turning, the key is to trade them and get the heck out without falling in love. The problem is most "investors" do not realize this and get caught up on the "dump". These rumors are good for intra day scalps, thats it....
What honestly caught my attention was the sentence:
"Theories abound on why rumormongering is so rampant (and so wrong) these days. Some blame the massive social networking sphere, where one "tweet" can sink a stock like the Titanic."Are you serious? I think the author might be mistaking "tweets" for the ridiculous crap that comes out of the
mouths of the anchors on CNBC as well as commentators pushing their books. There is nothing wrong with pushing your book on CNBC, that is what CNBC is for. ONE BIG infomercial. Believe it or not EVERYONE on CNBC is selling something, its just a matter of how far you look into their dealings. Iv never in two years seen a tweet move a large cap stock, unless from the Gasparino or kass crowds..
Back to the "tweet" comment, there are a few people on twitter who i do think use their following to help a stock move in the favor of their "call". They usually deal in thin stocks. Although most people who tweet about stocks who do have a following large enough for people to disseminate information from are usually trading mid to large cap stocks and are on the Stocktwits network which does a good job weeding out the pumpers and penny pushers.
Think twice CNBC, the people you have on move markets a hell of a lot more than a lowly "tweet". You think a tweet from someone is gonna send a stock say, Genzyme, off trend? hell no. If someone who had enough money to move a stock which trades millions of shares a day was following a guy on twitter and acting solely off the tweets, he or she should not be trading...
