Shorting #OBL Sunday at 11.35pm
Thursday, May 5th, 2011
The oldest maxim on Wall Street is ‘buy the rumor, sell the fact’.
The longer version: markets often effectively discount information long before a nugget of news becomes official. When rumors have abounded and the actual news finally becomes official, the party is over and the market subsides toward its prior level.
So it’s striking to see that tweet volumes Sunday night trended steadily up into President Obama’s announcement of the death of Osama bin Laden, then tapered off.
Was this because everyone went to bed, or because Twitter ‘info trading volumes’ conform to Wall Street’s favorite rule?