The stock market is often described as a weighing machine in the long run, but a voting machine in the short run. In today's high-speed trading environment, that voting machine is frequently run by algorithms that react instantly to headlines, often without understanding the context.
This dynamic appears to be the primary driver behind the recent movement in Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC). Following the release of the company's November revenue report on Dec. 10, the stock has pulled back approximately 6%, currently trading near the $287 level.
