Likewise, bad news can send a stock`s price plummeting. Stocks in cold or dying sectors will remain flat or neutral. When important news comes out, all successful traders abandon trades based on other trends. When a stock options in a hot sector has good news and begins to move up, the stocks of the other companies in the same sector will often start to run up as well in sympathy with the original mover. It may seem strange, but there is a reason for the market trends to act that way.Click Here To Download ==> Options Trading Systems.` And that`s all the market trends needs to hear. As long as the news reflects well on the prospects of the industry or business the news making company is in, it will generate a sense of possibility in the minds of market trends` traders. Knowing which sectors are hot is especially useful in uncertain market trends.Unless the market trends decide it doesn`t care about this news, which is not likely, the company`s run is over. The stock options is in a hot sector, and it`s a one to four split. The next morning, you see unexpected news that business in the company`s sector has dropped off sharply in the last quarter and that this slowdown is projected to continue for at least the next six months. It`s possible, isn`t it? The sector now has `potential.Now that we`re on the subject of news, let`s look at a related trend: sympathy plays. But make sure there`s no other factor keeping that particular stock options from rising, such as bad news of its own that will keep it from following the sympathy trend. As a trader, your goal is to be positioned in the strongest stocks and sectors when you buy, and in the weakest when you sell short. You will have to get out of the stock options. The stock options is rising nicely, and the ex date is three days away. Sectors go through hot and cold phases. By buying slower movers, you`ll get in at a good price and the stock options will have most of its run left. In the same way, if you`ve sold short to ride a Dropper Bottles trend in which stocks usually go down, significant good news about the stock options should send it back up. Remember, news overrides all other trends. And, like everything else market trends, are not whether the news is really good or bad, but what the market perceives it to be. At the same time, be aware of which stocks are overvalued so that you`ll know what to sell short when the market trends make a downturn. Likewise, when a stock options has bad news and begins to fall, others in the sector will often start to trend down as well. What`s going to happen to the split run? This news will take precedence over the split trend. If so, look for stocks that haven`t moved as much, for stocks that should also start running but haven`t yet.Remember, news overrides other trends. Let`s say you`re holding a company heading into its upcoming split.
David Jenyns is recognized as the leading expert when itcomes to designing profitable Options trading systems. You would think that good news for one company would be bad news for its competitors and would logically drive their prices down instead of up. If one company in the sector is doing well, it`s possible that demand for the whole sector`s business is growing or that the whole sector will develop its products or market trends so that all the companies in the sector will do well. This isn`t how the market trends work. You might not think the market trend`s reaction to a piece of news makes any sense, but should not affect your trading.Discover the "secret formula" of trading that anyone can use to consistently generate BIG profits from the market by downloading your FREE copy of David's new UltimateOptions Trading Systems course. Always go with the market. Unexpected news is one of the main reasons why you must set stops on every trade to protect your capital.Always be aware of which sectors are hot or `in play` so that you`re ready to trade into the right stocks when the market trends rallies. Whenever there`s a sudden general market trends rally, only the stocks in the hottest sectors will participate in the rally.A great way to evaluate sympathy plays is to look at all the stocks in the sector to see whether others have started running with the newsmaker