How to spot the present of trend traders on any stocks
Trend traders buy when there is a possibility that the market open higher.
They use the pre-market condition to predict if the market will go higher that day.
So even if other events such as earnings and any news related to the stock will be overcome by these trend traders. These traders know that the use of the pre-market condition to predict the stock movement does not work all the time. Therefore, these traders usually hold onto the stock when their prediction failed. So that is why they pick stocks that have the potential to come back up again if it happens to go down on the day they bought it. That is why Berkshire is the perfect stock for trend traders. So whenever you saw good news, but then Berkshire go down was because the pre-market condition was bad.