Reasons why stocks jump in value on no news?

• 22 September 2009

• #1

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Dilati

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What would be the reason for a stock to jump in value when there isnt any announcement or any news that would relate to it? is it because the share is devalued and the investers are more purchasing the stock in bolks or what?

For example today centro shares went up 20% and there wasnt any announcement or news regarding that stock.

and how can you forecast the shares movement by looking at the volume of trade?

Thanks

 

• 22 September 2009

• #2

So_Cynical

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Re: What would be the reason for a stock to...

I don't follow Centro...however we are talking about a 20 cent stock that is very speculative and has been for some time....looking at the volume today its safe to assume that all the sellers at 17, 18 and 19 cents got taken out...that leaves us at 20 cents.

U could argue that the Centro SP is just catching up to the rest of the market in general, or just keeping pace with it...about 8 mill traded today so not exactly earth shattering.

 

• 22 September 2009

• #3

tech/a

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Re: What would be the reason for a stock to...

Thanks for pointing CNP out.
There is much in the volume spread analysis in this chart and will post more at a more reasonable hr.

 

• 22 September 2009

• #4

jono1887

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Re: What would be the reason for a stock to...

tech/a said:

Thanks for pointing CNP out.
There is much in the volume spread analysis in this chart and will post more at a more reasonable hr.

Click to expand...

CER has more volume and it slightly less at 0.15c.
Does anyone know what the difference is between CER and CNP? Their both CENTRO

 

• 22 September 2009

• #5

Timmy

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Re: What would be the reason for a stock to...

jono1887 said:

CER has more volume and it slightly less at 0.15c.
Does anyone know what the difference is between CER and CNP? Their both CENTRO

Click to expand...

No offense intended Jono, but if you want to get a job in finance at the very least knowing how to use Google could come in handy.

 

• 22 September 2009

• #6

MACCA350

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Re: Reasons why stocks go up on no news?

The breakout was on the cards based on the formation of an ascending triangle.

cheers

 

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• 22 September 2009

• #7

Boggo

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Dilati said:

and how can you forecast the shares movement by looking at the volume of trade?

Thanks

Click to expand...

This could be a reasonable example to display volume and price providing a heads up as to what may be next.

(click to expand)

 

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• 22 September 2009

• #8

Boggo

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BLY is another example where the volume and the closing price for the day can be a lead up to something positive.

(click to expand)

 

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• 22 September 2009

• #9

tech/a

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The analysis of consolidation/accumulation/distribution areas by way of Volume and Price movement is indeed a fascinating topic.

There is so much that can be/is telegraphed to the analyst who understands it.

I have examples to present both in Daily and Hrly timeframes.
Will do that tonight when I have the time to present properly.

But the key is in EXTREME volume both extreme in quantity and extreme in scarcity of volume.I find the LATTER very powerful.
Where it occures (Both volumes) what range does and consequent price action fills in the blanks.

Volume support/resistance becomes a tool Ive never seen discussed or applied.(Maybe Ive invented it?).

 

• 22 September 2009

• #10

johnnyg

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Here's a system I have, It's been long CNP from the 10/8/09. Only uses Volume + Price for entries.

 

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• 23 September 2009

• #11

tech/a

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Thanks again for CNP.
It obviously read my script.

 

• 25 September 2009

• #12

jono1887

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tech/a said:

Thanks again for CNP.
It obviously read my script.

Click to expand...

I'm assuming you're one of those that managed to double their investment in a week?

 

• 25 September 2009

• #13

tech/a

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Took some off the table.
Bought some back again.
So enjoying the volatility

 

• 25 September 2009

• #14

skyQuake

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tech/a said:

Took some off the table.
Bought some back again.
So enjoying the volatility

Click to expand...

Its all deja vu

 

• 28 September 2009

• #15

prozac

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Some companies just leak like sieves. How many do you see where the volume starts to go up only days before a good announcement.

 

• 28 September 2009

• #16

jono1887

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prozac said:

Some companies just leak like sieves. How many do you see where the volume starts to go up only days before a good announcement.

Click to expand...

And where would one be on the other end of these leaks??

 

• 4 October 2009

• #17

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Centro CNP jumped because they got a brilliant wind up on the ABC2, 'Inside Business' program. 10.00 am Sunday. When I saw it I didn't even have the deposit on a bread roll.
Happy punting, chrisalex