How Do You Get Analysts´Recommendations?

[Jenerous]

By the time I get to hear about analysts´upgrades, downgrades etc it´s always too late. The market has already reacted. My question is this. How are other people getting to know about these analysts´recommendations so quickly - within seconds or minutes - and how can I do the same? I´d be grateful to be enlightened.

 

[Rhody Trader]

Be a customer of said analyst's employer. It's really that simple. The analysts have no motivation to provide their reports to the public immediately.

 

[Jenerous]

How Do You Get Analyst´s Recommendations

Be a customer of said analyst's employer. It's really that simple. The analysts have no motivation to provide their reports to the public immediately.

Hi John,

Thanks for that. The problem is, there are many companies capable of impacting the market and I couldn´t be a customer of them all. Isn´t there any organisation compiling all these upgrades/downgrades as soon as they´re announced?

Similarly, some traders seem to be getting news far quicker than the rest of us. For example, I was standing ready to trade Smith & Nephew a few days back. The results were due to be announced at 11.00. At 11.00 and one millisecond the price was falling like a stone but nobody could have had the time to read/hear the results and react that quickly. So what´s going on? How are some people getting information ahead of the rest of us?

 

[timsk]

By the time I get to hear about analysts´upgrades, downgrades etc it´s always too late. The market has already reacted. My question is this. How are other people getting to know about these analysts´recommendations so quickly - within seconds or minutes - and how can I do the same? I´d be grateful to be enlightened.

Hi Jenerous,
Welcome to T2W,
Obviously I don't know your circumstances or trading experience, but the nature of your question suggests that you're probably not VERY experienced. To trade the news in the manner that you imply is best left to the pro's with bucket loads of experience and top notch, state of the art kit to match. If you have both, then please accept my apologies! If you don't, then the solution is to do what most here do which is to trade the reaction to the news as opposed to the news itself. Check out this thread - there's lots of useful info' there:
http://www.trade2win.com/boards/general-trading-chat/30936-making-mint-off-news-trading-desk.html
Cheers,
Tim.

 

[Rhody Trader]

Hi John,

Thanks for that. The problem is, there are many companies capable of impacting the market and I couldn´t be a customer of them all. Isn´t there any organisation compiling all these upgrades/downgrades as soon as they´re announced?

There are aggregators. It happen to work for a company which does that sort of thing, but they can only aggregate what has been released to them. The brokerage houses and investment banks producing the research intentionally delay releasing it to non-customers for some period of time to allow the customers the chance to react first. As a result, the aggregators won't have the upgrades/downgrades in real-time.

Similarly, some traders seem to be getting news far quicker than the rest of us. For example, I was standing ready to trade Smith & Nephew a few days back. The results were due to be announced at 11.00. At 11.00 and one millisecond the price was falling like a stone but nobody could have had the time to read/hear the results and react that quickly. So what´s going on? How are some people getting information ahead of the rest of us?

It sounds like your focus here is on the earnings releases rather than the research stuff. It's possible that the news feed you were following was slow, or that another news feed was early. The latter doesn't happen often, but it does sometimes happen.

 

[M20J]

Some hedge funds have been looking for a while at computer analysis of news stories and earnings releases and using that to automatically place orders. Reuters now provides tagged news feeds designed for computer analysis programs.

There are also some electronic feeds of recommendations from brokers to funds which are tied in to systematic trading strategies. The best known is Marshall Wace and their TOPS system.