Complete novice question

[submar1ney]

Hi guys, as the title to this post reveals, i am a complete novice to trading and the markets. However, i'm eager and keen to learn.

My first question is this, and i'm sure there is an equally simple answer.

M & S revealed 1000 jobs are to go and are also closing dozens of stores / outlets. So why did M & S share prices rise today? What is the thinking / reasoning behind that?

Cheers

Subby

 

[bbmac]

Hi guys, as the title to this post reveals, i am a complete novice to trading and the markets. However, i'm eager and keen to learn.

My first question is this, and i'm sure there is an equally simple answer.

M & S revealed 1000 jobs are to go and are also closing dozens of stores / outlets. So why did M & S share prices rise today? What is the thinking / reasoning behind that?

Cheers

Subby

Simply put, the market took the view that M&S is adjusting to the present retail market realities by cutting excess and overhead and closing unprofitable stores thereby positioning themselves more advantageously to ride out any sustained downturn in retail spending. Ie that such actions stengthened the company and thereby added value to it's share price.

 

[foredog]

Bad news isn't as bad as it could be....

Old markets saying

Sell the rumour buy the fact (or vice versa)

 

[Skill Leverage]

Q3 sales were better than expected. Also you can't just expect price to drop on the back of some bad news, there are a myriad of factors involved in market behaviour. You also have to consider the fact that job cuts are not exactly shock events any more given the events of the past 6 months, and so to some extent this news will already have been 'priced in' when it comes to M&S' valuation.

 

[Skill Leverage]

Bbmac also makes a good point about job cuts not necessarily being bad news in terms of the future health of a company.

 

[KillPhil08]

Also daily technicals .

 

[submar1ney]

Thanks guys. I did a little thought process before posting the question and did think that M&S were attempting to 'streamline' the business, so i suppose i was on the right train of thought. However, always a sceptic, i needed reassurance and a definitive answer from experienced heads

Cheers

Subby

 

[raysor]

The sales figs were broadly in line with expextations. Some brokers have changed from Sell to Hold on the basis that there is more upside than downside.
I think I would be a seller.

 

[Bowball]

also, dont forget that if the market is expecting an event it'll be reflected in the price before it happens. not that i looked, but its unlikely that bond prices will have risen today because the rate cut will have been factored in some time ago....as evidenced by the fact that most corp bonds are trading well above par and have been for ages

 

[ceydababy]

Hi guys, as the title to this post reveals, i am a complete novice to trading and the markets. However, i'm eager and keen to learn.

My first question is this, and i'm sure there is an equally simple answer.

M & S revealed 1000 jobs are to go and are also closing dozens of stores / outlets. So why did M & S share prices rise today? What is the thinking / reasoning behind that?

Cheers

Subby

Don't read the news and don't listen to commentators. The answer is that simple. What should happen often doesn't. If you want talking heads trying to explain why the dow finished up watch bloomberg. IT'S ALL NONSENSE. It finished up because there were more buyers than sellers and it closed down because there were more sellers than buyers. I don't need Bloomberg to tell me why it closed up/down it's bloody obvious.

 

[tomorton]

Trading news announcements is an extreme sport. Trading the market reaction to news announcements is a rational business decision.

Reading between the lines I suspect you area bull by nature. To be a long-term risk-averse bull rather than a short-term opportunist I would first like the FTSE100 to show me that an uptrend is established and it might use most or all of 5 obvious TA signals, probably in this sequence -
price rises through 50MA
50MA turns upwards
price rises through 200MA
50MA rises through 200MA
200MA turns upwards

After these, or most of them, careful assessment of individual shares and sectors of course would help, but in such a bullish market many people just load up on the biggest 5 FTSE100 or a diverse selection of large caps or whatever. Buying now for the long-term is an act of faith.

 

[Skill Leverage]

Read a nice piece in the FT that discusses this sort of thing, went along the lines of saying that a typical feature of bear markets is that bad news has far less of a negative impact on share value than it would during a bullish period.

 

[mrkoherence]

Morning Every One!

I am pretty new to all this so sorry if I am boring you. I have invested in Property for a few years but due to the present climate I am looking for a new way to invest.

I don’t know much about the stock market, but I was advised by a friend of mine that it could be a good way to go.

The only trouble is I don’t know where to start as there is so much on the internet.

I have obviously been doing my due diligence and have come across some good sites like CMC, IG Group and Stirling chase! But have herd horror stories! What is the best type of platform to go for?

I hope you can help.

Many thanks

mrkoherence

 

[Skill Leverage]

Morning Every One!

I am pretty new to all this so sorry if I am boring you. I have invested in Property for a few years but due to the present climate I am looking for a new way to invest.

I don’t know much about the stock market, but I was advised by a friend of mine that it could be a good way to go.

The only trouble is I don’t know where to start as there is so much on the internet.

I have obviously been doing my due diligence and have come across some good sites like CMC, IG Group and Stirling chase! But have herd horror stories! What is the best type of platform to go for?

I hope you can help.

Many thanks

mrkoherence

Maybe do a bit more reading before you start worrying about which trading platform is best.

 

[Bowball]

i'm starting too and have been doing a lot of reading to try to establish a strategy. read Technical Analysis Simplified and Way of The Turtle. also, read everything you can on this forum as it is excellent

if you cant wait to get stuck in , open up a demo account which will give you (eg) a fictitious £100k to play with

i plan to paper trade for at least 3 months before risking any of my own cash