Annotated Stock Price Chart - There has to be a better way
Hi everyone,
I am currently a third year analyst at a bulge bracket investment bank. I am 100% sick of making annotated stock price charts. Not the part of making the actual chart in powerpoint - but rather the part of figuring out what is actually moving / causing the big stock price swings which are visible on the charts. Yes - you can just look at the date of the big moves and figure out what news has come out on that date - and yes earnings is obvious. But outside of earnings - I always find that there are some sharp jerk movements in a 1 year historical stock price chart and with enough digging I figure out it has something to do with an article or announcement that came out in relation to a competitor company ect..... It can be done - of course - but it is annoying and very time consuming.
Which brings me to my question for everyone on this forum:
Does anyone know of a better way - whether through a third party website or any offering - to get an annotated stock price chart that actually shows true headlines or events that moved a stock price chart (even if it had to do with a competitor and not the specific company whose security you are looking at)?
Any help or thoughts would be super appreciated.
I convinced my senior bankers we don't need to include the annotations anymore by slowly decreasing the number of annotations and then just not including them at all. Somehow they didn't care / agreed it was a good idea.
Edit: If I have to though, I just use the same annotations from CapIQ's annotated stock chart feature.
Currently I have found no way to automate this process. Which is great because it is 100% the most exciting part of being an analyst
This is one of those analyst tasks that requires judgment, so look on the brightside: It's one less thing your bank can outsource to a robot. Otherwise, there are a few things you can do: - run a smart boolean search in whatever news database you use that includes common terms and wild cards associated with news- or rumor-driven share price movements, e.g. "[company name]" and "share price" or "stock traded" or "investors reacted" etc. - You can do this for the entire period, or confine it to a date range around meaningful movement in the stock price - Run your chart against the S&P or the relevant industry index for the company. Lets you rule out (or explain/annotate) share price movements driven by exogenous events - Check the equity research on the company. A lot of the reports have annotated stock charts in the back pages.
Found it pretty helpful to use a Bloomberg line chart function for the Co. when you throw in a few events indicators/ER releases/rating changes etc. If you then overlap it with the rebased S&P line, you can see the market-wide shocks.
I think in Scottrade you can overlay all that stuff on the interactive charts. If not www.finviz.com probably has something. Out of curiosity how often do you absolute value volume on days with big shifts?
Edit: I am guessing you don't have BB or Datastream or Capital IQ, so maybe check www.ycharts.com too
Thanks for the responses so far everyone. Unfortunately FinViz and Y Chart don't have anything of value :(
Look at StockTwits for twitter activity during the date. You can usually see what pairs or competitors are popular during that day and dig into what ever the twitter news peeps are going crazy for.
No offense, but I would not do this. 90% of the people posting on StockTwits are dead end day traders with absolutely no idea what they're talking about. You want to show their musings to your boss, or a client?
Ha I am not suggesting take the commentary, but usually the day traders light up when there are moves in the stock price. I think that's what OP is looking for - information that is not really readily available and if you can get an idea about what people are talking about you can go source the original content on your own.
You are right about the quality of user, but they usually throw some shit around that can lead you in the right direction.
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