Buy The Rumor, Sell The News

Buy The Rumor, Sell The News
December 04 05:04 2018



Earlier today I made a post about the Smart Money knowing about the new trade tariffs suspension and what they bought towards the end of the Friday session.

The Smart Money Already Knew About The New Trade Tariffs Suspension

So what do you think the Smart Money did this morning?


I’m more than certain the Smart Money bought the rumor and sold the news.

“Buy the rumor, sell the news” is a phenomenon that happens in the financial markets. The Smart Money buys an asset and once the event passes or the report is released, the news becomes public, but now the Smart Money dumps, I mean sells the asset to the retail trader.

It doesn’t hurt that price came into a daily supply zone and pulled back. So at the Market open, I began to build a position in Caterpillar and The New York Bank Mellon Corporation by buying leap put options with the goal of turning them into calendar spreads.



This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.


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About Article Author


I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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