"Trading Catalysts takes you into the market and recounts
moment-by-moment price action. From an almost 14% rise in the
Nasdaq following a surprise Fed rate cut to an incredible (and
temporary) 22% decline in the S&P 500 futures price folliwng a
single large sell order, Trading Catalysts is loaded witih
real-life examples of how events move markets. Must reading for
traders and investors alike." --Victor Canto, Pd.D., founder of La
Jolla Economics and a columnist for The National Review "At
last...an invaluable investment book that shows in detail how
markets actually behaved during extreme events, times when fortunes
were won or lost in the blink of an eye. This is the real world of
trading and risk, not academic theory. Read, learn and prepare
yourself because these types of extraordinary events will happen
again." --Peter Matthews, Managing Partner, Optimation Investment
Management LLC Understand the Triggers of Market Volatility-and
Take Advantage of Them Actionable lessons from 25 years of major
events-and the market's reactions to them Predicting the market
impact of everything from Fed statements to natural disasters
Separating real information from noise, major "market movers" from
trivia In Trading Catalysts, Robert I. Webb examines the various
factors that move markets. Webb focuses on the catalysts that spark
the biggest price changes-and the greatest potential for
substantial profits or losses. Using numerous real market examples,
Webb demonstrates the often inconsistent response of prices to
similar trading catalysts across markets and over time, the
occasional significantly delayed response, and the frequent market
overreaction. Whether traders bet directly on a trading catalyst,
on the presumed market reaction (or overreaction) to it, or not at
all, the potential impact on market prices and volatility means
that all traders must pay attention to trading catalysts and the
market reactions that they induce. At the very least, the prospect
of significant volatility around some event may affect the timing
of a trader's entry or exit of positions and may cause a trader to
reduce his position size. If you're a serious trader, this book
will help you understand the influence of trading catalysts and
identify potential trading opportunities. Volatile financial
markets create both the risk of substantial losses and the
opportunity for substantial gains. Sudden jumps or breaks in prices
can impart a roller-coaster-ride-like quality to trading or
investing in financial markets. Trading Catalysts is the first
complete guide to the events that spark large changes in prices.
These include: central bank actions; ill-advised comments by
policymakers; news of natural disasters; elections; certain
economic reports; terrorism; company specific announcements; the
unwinding of large positions by key market participants; and simple
trading errors among others. The varied origin of trading catalysts
means that some traders may have an edge in anticipating the
market's reaction to certain trading catalysts. Numerous real
market examples take the reader into the heart of the market to
illustrate the direction, magnitude, speed, duration, intensity and
breadthof influence of trading catalysts on market prices. Because
a minute can be a "lifetime" in the world of trading, many of the
detailed examples recount moment-by-moment and tick-by-tick changes
in market prices. This book discusses the role that trading
theses(or prevailing beliefs about market relationships), market
conditions,and sentimentplay in determining how prices react and
sometimes overreact to various trading catalysts over time. Trading
Catalysts will help readers anticipate potential events that could
spark rallies or breaks; predict situations with feedback loops
that drive markets up or down; and identify situations where
substantial overreactions are likely to occur. Size Matters: When
key players unwind positions and move the markets The Information
in Economic Reports: Rout or Rally? Uncertain market reaction to
the forecast errors from economic reports Talk Isn't Cheap: When
the comments of politicians and policymakers move markets Market
Interventions: When governments intervene: case studies, from
currencies to oil Geopolitical Risk: From elections to terrorism to
wars Bubbles, Crashes, Corners, and Market Crises: Lessons from the
"silver corner," the 1987 stock market crash, and the Asian
Financial Crisis Quantifying the Market Impact of Natural
Disasters: From earthquakes to floods to mad cow disease Fat
Fingers: When trading errors and mistranslations move the market Of
Straws and Camels' Backs: When trivial news sparks huge moves
Preface Chapter 1: Introduction Chapter 2: Market Conditions and
Sentiment Chapter 3: Talk Isn't Cheap Chapter 4: Geopolitical
Events Chapter 5: Weather and Natural Disasters Chapter 6: Market
Interventions Chapter 7: Periodic Economic Reports Chapter 8: Size
Matters Chapter 9: Bubbles, Crashes, Corners, and Market Crises
Chapter 10: The Accidental Catalyst Index
General
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