Measuring the News: A Look at News Quantified’s Stock Impact Reports
In this post, we’ll go over the information contained in News Quantified’s Stock Impact Reports.
If you’re a regular visitor to News Quantified, you’ve probably seen one or more of our Stock Impact Reports. If this is your first time here, welcome!
These reports are generated whenever one of the diverse data streams baked into the News Quantified platform record a news event related to a particular stock. These data-rich documents are the building blocks of a highly profitable stock trading approach.
We’ve provided our Impact Reports to the public as a free service, and they’re a great way to get a broad perspective on how a stock has reacted to a particular news event. Our paid users get access to an added layer of data that takes these reports from useful tool to a cutting-edge trading strategy: deep historical data predicting how much more a given stock is likely to move over various hold times.
Our sample report, reproduced below, concerns a nanotech firm’s move into the Chinese market. But it’s important to understand that these Impact Reports will cover all sorts of news events, from routine announcements with almost no discernible price impact to headline-shaking mergers between mega firms that shape the global economy for years to come. We have more specific event data on special news event types like earnings reports (did the stock beat or miss expectations) and analyst stock ratings (upgrade or downgrade?).
Here’s the basic layout:
- The top of the page shows the headline associated with the news event and the first few lines of the associated press release (there’s also a link to the full release if you’d like to read in more depth).
- The Impact Snapshot shows the precise time the news events was recorded and some fundamental information on how the stock has moved since the event. You can find further explanation of these terms and numbers below.
- Two graphs show how the stock moved on the day of the news event, and how it has moved since. If you’re viewing the Impact Report during the day of the event, these two graphs will be the same. A third graph shows how velocity has trended since the news event.
- The panel on the left compares data from the event day to subsequent movement (see glossary below).
Stock Impact Report Glossary
- LAST PRICE @ NEWS EVENT: the price of the stock at the time the headline “crossed the ticker.”
- LAST PRICE: the last recorded price of a stock following a news event.
- MAX UP: the high point reached by the stock since the news event, expressed in price and percentage change.
- MAX DOWN: the low point reached by the stock since the news event, expressed in priced and percentage change.
- VOLUME RATIO: The impact of an event on the trading volume of a stock compared to normalized 5-day levels
- VWAP: Volume-weighted average price. VWAP is equal to the dollar value of all trading periods, divided by the total trading volume for the current day. Generally, if a buy is made below the VWAP price, it’s considered a stronger value. The opposite is true if a buy is made above the VWAP.
- POST NEWS RANGE: the total percentage change difference between the high point and low point for the stock since the news event.
- PRICE CHANGE: The difference in the price of a stock from one specific time period to another
- S&P 500 (SPX) A market value-weighted index based on 500 of the largest publicly traded US companies across multiple sectors, covering around 80% of the US equities market. The index is considered a key benchmark for the broad US stock market.
- VOLUME: The number of shares or contracts traded in a security or broad market during any specific period of time. If volume is high, a share-price move is seen as having more conviction. Low volume, even with a high price move, means the move is less significant. Stocks with high volume have a higher liquidity (can easily be bought or sold), while those with low volume are less liquid and often more volatile.
We hope this guide helps you glean insight from our many reports (you can subscribe to reports for a particular stock you’re keeping tabs on from their relevant Impact Report). By clicking “more company research,” you can see a list of all news events associated with a stock.
If you’re interested in learning more about news-based trading, we’re continuing to conduct a free series of virtual training seminars. We go over the basics of news-based trading and take a hands-on look at how News Quantified users are profiting from the synthesis of news and stock-market data every day. You can claim a space in our next available session using the button below.