Strange Response to Wright’s Earnings

On the news each evening, the anchors report that the market did X due to Y. In reality, the market did X while Y happened as well. The market has a mind of its own, and we can’t always say why it did what it did.

This morning, I pointed out what I thought were good earnings from Wright Express ($WXS). Yet the shares dropped 5% early today. Wright then rallied to a 5% gain. That’s a 10% turnaround in 90 minutes.

Why?

Honestly, I have no idea, and you can’t say why traders act they way they do. Wright held their earnings call at 10 am, but there was nothing there that should have altered anyone’s perception of the stock. This is another reason why I avoid trading and focus on the fundamentals. A stock can fool the market for a while, but eventually, the true value will shine through.

Posted by on February 8th, 2012 at 2:12 pm


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