There have been academic studies that show investors tend to place too much importance on recent information, also known as psychological anchoring.
http://seekingalpha.com/article/1363671-is-the-bad-news-already-priced-in-for-these-5-short-squeeze-picks?source=feed
http://seekingalpha.com/article/1363671-is-the-bad-news-already-priced-in-for-these-5-short-squeeze-picks?source=feed
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