From Victor Niederhoffer

At x pm every day, an announcement is made. The market moves to a level. The move is attributed to the announcement. The question is whether the move would have occurred regardless of the announcement. Also, whether the announcement was planned to make the move. For example, at 3:02 on 11/21, an announcement that the new Treasury Secretary was appointed occurred and the market moved up 6% in 59 minutes. Similarly at 3:10 last Friday, the announcement from the current Secretary that he believed everything was under control. The market set a new high and then dropped 6% in 50 minutes. We know that the news follows the price. Also, that the news is often now as "new" as we believe. The proverb comes to mind "the ____ will do what he can do." Also, the ephemeral nature of the news and those who know about it in advance. Is it fate or chance when such moves occur? And does the market do what it's going to do regardless? How would one approach this question and its tests and what insights can be drawn from such a traverse?

As far as I can understand, I would have also applied the same theory that the market moves before a major announcement is made either positively or otherwise. From what I know, either major players in the market are related to the party that made the announcement or people close to them that is holding to a large amount of the stock will have been informed earlier about the news that will be announced. Therefore, they would have made the first move in the right direction first before anybody else in the market. Subsequently, it will snowball into a larger move in the direction of the news and up until the news is announced, it will have already been discounted and it will be left with those uninformed people who received the news last to make the final move if any.