Instant Market Reaction. Not.

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Some folks believe that the market reacts to news within milliseconds. Let's take a look at the daily price chart of British Petroleum (BP) to test this theory. I've put an arrow marking the day the fatal explosion occurred:


Over the course of over a month, yes, BP has lost about a third of its value. But instead of taking milliseconds to react, almost an entire trading week transpired before there was any meaningful reaction. The same can be said of TransOcean (RIG) which has suffered even more greatly.

Incredible, isn't it?