#NSA


The good news being fully priced in essentially means funds have pre-emptively overdrafted expectations. Before the news is officially announced, major players boost stock prices by spreading rumors of good news, and retail investors follow suit; when the announcement is made and the good news is fully realized, there are no subsequent new upward catalysts, leading to concentrated profit-taking by early investors, with stock prices mostly opening high and then falling, often dropping sharply, which is the so-called "dead upon exposure."
A few targets with very strong fundamentals, if their performance can continue to exceed expectations, may gradually fluctuate upward after a short-term correction; but the vast majority of stocks see a turning point immediately after the good news is announced, making investors who chase high and get trapped vulnerable. It is important to avoid blindly buying on the hype after the official announcement of good news.
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