How market absorbs a bad news?

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Normally market absorbs a bad news in advance- starts falling many days before a bad news and rising before a good news.

When the news is actually made public, market reacts sharply due to greed/fear action of retail traders- the traders who could not actually buy a bad news due to fear or there wallet is already empty due to averaging and all OR who could not sell a good news due to greed or because they would have just entered.

Wholesale traders win because Retail traders lose.

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