How do people know?!? Stock related

[Cyber0066]

I'm curious how people are able to tell when good news is about to happen.

For example, ATI Technologies posted quarterly revenues up 11% on Thursday at 10:00 according to Yahoo. But when i look at the chart, it looks like trading already started at over $20 (Up from $18ish)
Here's the chart: http://ca.finance.yahoo.com/q/bc?s=ATY.TO&t=5d
I would've thought that the news would've made it to the public FIRST, and then people react by buying ATI shares and driving the stock price up. Instead of it already starting the day at a higher price.

So, to me it looks like people already found out that good news is coming prior to public release and it drives the stock up.

How do people know this?

THanks

[Kinki]

My dad plays the stock and he's an avid user of stock forums. So instead of RFD, he surfs stock forums where ppl share, collaborate and dissect informations.

[Tiberius]

This is usually due to information leaks that occur. Somebody has to see the financials the moment they are calculated... somebody has to write up the news release, etc... It isn't supposed to happen, but it does.

Also, the market often anticipates an event. If it knows that earners are supposed to be released on a certain date - and the general belief is that it will be good news... the stock will rise ahead of the earners release in anticipation... or fall if bad news is expected.

The technical action more often than not preceeds the public release of the "reason" for the action... this is why TA is such a good way to trade stocks once you understand it. The stocks tend to move BEFORE the news that explains the move hits the market.

[T-Bone]

2 words. Insider trading.

I have to laugh. It seems even the band wagon jumpers and the 2nd hand insiders have trouble getting in soon enough to make a profit, as all the other 1st hand insiders seem to be driving the price before the news is released.

I'm watching a stock that usually trades at 50,000 shares a day, but when it hits 1,000,000 shares in one day, there is usually news to follow the next day. Buy the time the news is released, the stock has leveled out.

Makes you wonder how many people could go to jail if the police were to crack down on the whole insider trading thing.

[sparkplug]

Whatever happened to the income trust probe the RCMP was conducting on Ralph Goodale and his office?

How come so few people ever go to jail for white collar crimes anyway?

[AlexH]

Whisper numbers!

http://en.wikipedia.org/wiki/Whisper_number

[Ron]

You are all wrong.

It looks like no-one bothered to verify the claims made by OP.
The results were actually released on "THURSDAY, MARCH 30, 2006 6:00 AM," which is obviously long before the start of trading.

http://bigcharts.marketwatch.com/news/articles.asp?guid={4F7628AD-41E2-4ED8-A751-FA3F744F56EC}&newsid=866575745&symb=ATY&sid=126172

Or here is the Yahoo link for 6:01 AM:
http://ca.us.biz.yahoo.com/ccn/060330/200603300318579001.html?.v=1

Cyber0066, there is very little insider trading on the big stocks. Not nearly enough to move them.