@rexmac

Markets typically anticipate institutional buying or fundraising announcements. Prices often react days or even weeks ahead due to information leakage or speculation. This “buy the rumor” effect creates pre-announcement rallies. Once official, reactions depend on how well reality matches prior expectations. If the scale of buying or financing exceeds forecasts, continuation rallies occur; otherwise, a sell-the-news pattern develops. The exact timing varies—hedge funds and insiders often move earlier, while retail reacts later. Monitoring derivatives positioning, funding rates, and social chatter can indicate whether anticipation is already priced in before official disclosure.

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