As I have said here many times before, institutional traders are like sports talk radio host in that they consistently overreact to every bit of news. Having been there, I know why. When you are 100% focused on something all day every day, any headline that directly affects that thing seems to have huge significance. So, when I think I see an opportunity based on a market underreaction to a news story, I proceed with care. Given the inherent and understandable tendency of traders to overreact in the short term it is far more likely that it is I…
