Bitcoin Paypal market reaction update 09/08/2014
Paypal news as everyone is aware of, is good. It is good for adoption and good for fundamentals. As a technical analyst, I pay special attention to how market reacts to news. Lets be real, the ad is a BFD, big fucking deal, for rumors-ville, it pretty much suggest they will start adapting bitcoin into their existing business model. For a high speculative interest product like bitcoin, "buy the rumor, sell the news" works pretty darn well.
With news like this, we should rally like crazy including a e-parade in my opinion. How did the market react? Rallied shortly and took a dump within 3 hours. While a sustained rally could take a long time, my point is that market reaction to this great piece of new was disappointing.
Related anecdote story on trading and stock market reaction:
On a related past experience, I was around when Saddam Hussein was captured. Here is a transcript of what happened.
--Hussein's Capture Seen Boosting U.S. Stock Market (Sunday, Dec. 14, 6:42 p.m. ET)
--Stocks Rise in Morning Trading on Hussein News (Monday, Dec. 15, 10:18 a.m. ET)
--Stock Indexes Continue Rally at Midday on Hussein Capture (Monday, Dec. 15, 12:21 p.m. ET)
--Stocks Close Sharply Lower Despite Hussein's Capture (Monday, Dec. 15, 4:59 p.m. ET)