Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Sometimes you look at a stock and say “everyone knows this is going to happen so it must already be priced into the stock”. That was my view of Lions Gate (LGF) a few weeks ago as the first summer blockbuster, “Hunger Games” was set to be released this weekend. Unfortunately, the “efficient market” is not really so much and the stock has exploded on huge volume the past few days. Hmphfh!
p.s. for those who are newer to the market (i.e. past 2-3 years) and consistently hear me complain about lack of volume on breakouts, *this* is what a high volume breakout looks like, and what *used* to be a great sign of “buy buy buy”. Since 2009 we’ve seen tons of such moves without any volume at all, causing a lot of us ‘veterans’ to scratch our head at the new paradigm. It’s gotten to the point I don’t even look at volume anymore as it’s become useless. Somehow 50+ years of historical context no longer is needed.
As an aside, I don’t know a darn thing about this movie except it’s based on a book and has a huge installed audience, apparently of teenage girls and young women – trailer below 
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