
Nexen (NXY) which got crushed when rumors started coming out that the Canadian government would reject its acquisition by CNOOC.
Hours later, the news came out and the acquisition will actually be approved by Canadian regulators.. the stock is now back up trading at $27 after hours. Imagine someone who shorted the stock only to get it back for 15-20% cheaper a few minutes later?
Groupon (GRPN) increased by nearly 25% on rumors that it might be acquired by Google .. who knows if it will actually happen but the stock certainly had a good day… it’s tough to know if someone planted this news or if there’s something true behind it
Have You Done Or Do You Know “Day Traders”? If so, how are they doing? With the HFT firms and these huge swings, it’s become very difficult for day traders to remain profitable. I personally stay far away.. I try to avoid using intraday stops for example to avoid being impacted by such moves.
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In that regard, see this excellent article from Zero Hedge. I’ve been experiencing the same problems getting fills, too many exchanges and too many algorithims leads to chaos.
http://www.zerohedge.com/news/2012-12-11/guest-post-five-minute-example-hft-shenanigans
@Ken – Yes good, one thanks for sharing;)