One of the most sought after elements in trading and active investing among capital markets participants is the notion of actionable information. Information in this industry arrives in various forms and is often isolated for further review and analysis. The more experienced managers and traders take a rather novel approach to bits of information; they group it together to comprise a compelling argument for a directional play.
With the understanding that each situation can be interpreted differently, traders and active investors first gather facts from a variety of sources. Capital Market participants rely on several sources to provide such as option activity, insider and company filings, analyst opinions and research notes, pertinent headlines and most importantly professional and experienced aggregation of the information.
Experienced market participants were made aware of important news items on AVGO and ZFGN from the TradeXchange and Early Global News (a contributor to TradeXchange) on Thursday morning. Early Global News highlighted important reasons behind Zafgen’s, ZFGN, price drop. Additionally, the TradeXchange brought attention to a downgrade on Thursday morning from SunTrust on the security. The stock was lower by 5.10% by the end of the trading day.
Avago Technologies, AVGO, was highlighted by both the TradeXchange and Early Global News in different capacities. The TradeXchange highlighted a price target increase, premarket strength and positive mentioned by a financial news network as Early Global News brought attention to the security via a positive article based on earnings results. This is the type of aggregation that traders rely on to extrapolate information that would potentially result in a directional trade. In this case, AVGO finished the day higher by 9.51%.
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