Crude Oil Could Be One of the Best Investments of 2014

Spikes in the price of oil have triggered recessions in the 1970s and again in 1990. However, these points are historical anomalies. It wasn't the price spike that caused the recession. Global geopolitical events underlying the price moves caused the recessions. In both examples, the details of the story held important information that couldn't fit into a headline.
News headlines can often trigger sharp moves in the stock market. Usually, it is the headline that creates the reaction as traders and high-frequency trading firms try to anticipate what is in the story.
For example, the monthly employment report starts with a headline about the number of jobs created or the current unemployment rate. Some traders scramble to buy or sell while others read the report. In early December, the full report was 39 pages long and analysts who read the entire report saw details that headline writers missed. This is often the case, and those details are the reason that sharp market moves driven by news are often reversed. (more)

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