Rumor Hound Review – Should You Place Trades on Rumors?

Rumor Hound is an artificial intelligence (AI) powered app platform that rapidly analyzes and delivers buyout rumors directly to its users for trading opportunities ahead of the crowd. It’s powered by complex machine learning algorithms that perform the legwork of scouring thousands of unstructured public data sources to uncover, identify, filter and analyze tradeable mergers and acquisitions (M&A) ideas. Traders gain the advantage of speed while investors can use the robust analysis and forecasting features. The software seeks to enable traders to react ahead of the news and competition at the earliest stage of the information cycle often buried within the data.

The platform also provides potential price impact targets as well as performance potential to outperform the general market and credibility of data sources. All things related to analyzing and trading buyout rumor activity is contained on this single source of truth platform for enhanced decision-making on these type of trades.

So, is Rumor Hound what you’ve been searching for? Let’s find out in this ultimate Rumor Hound review.

Rumor Hound Pricing Options

Rumor Hound offers three pricing plans billed monthly or discounted prepaid annually. Each plan is priced for a single user and unlimited rumors billed on recurring basis until cancelled. 

The Standard Plan costs $19.00 per month and includes: Continuous M&A Source Growth, Filtering, E-mail/SMS Alerts, Source Popularity Score, Rumors Likely to Beat the S&P 500, Unique Rumors and Most Rumor Activity. Recommended for active traders.

The Premium Plan costs $29.00 per month and includes all features of the Standard Plan plus: Most Active Superstars and Source Reliability Index. Recommended for casual traders.

The Professional Plan costs $39.00 per month and include all features of the Premium Plan plus: Estimated Price Impacts and Early Access to New Products. Recommended for investors.

All plans come with a 14-day free trial offer and an annual prepay option for a 20% discount off the monthly rate.

Rumor Hound Features Breakdown

Here’s some of the notable features on the platform which is available through web-based and mobile app. Keep in mind that the available features depend on which pricing plan you subscribe to.

Dashboard

The dashboard is simple and straightforward. The platform indicates the total cumulative number of M&A rumors uncovered. Companies are listed with stock symbols, number of rumors, date of origin analysis along with AI-generated credibility, reliability scores and price impact estimates. As mentioned before, some of these features require higher priced plans. Users can sort the list by headings as well as investigate the stocks in more detail by researching the actual source origins by the links provided. There’s tons of trading ideas that users can find just off the dashboard. The AI will estimate the percentage price impact on stocks that have M&A chatter. 

Detailed Analysis

Traders that find certain stocks compelling can research further with detailed analysis. This provides a snapshot of the company metrics along with a simple chart, analysis ratings and direct URLs to the sources. The interesting thing is how it lists the potential acquirers along with a credibility rating which is determined through sophisticated AI-powered analysis.

Charts

The platform provides simple charts for users to get a general view of price action. Users should have a reliable advanced charting platform, such as TradingView, to form any deeper analysis on price patterns and set-ups.

Most Active Superstars and Unique Rumors

These premium features provide real time lists of stocks that are experience high volume driven by M&A rumors. There could be other factors contributing to the volume and momentum, however, traders will benefit from being able to find active movers. Unique rumors are stocks that the AI determines are unique based on a number of sophisticated metrics. It’s always worth watching these stocks. Additionally, the Rumors Likely to Outperform the S&P 500 can provide some compelling ideas but not to be taken completely in context.

Reliability

Illustrated in the form of a simple colored speed-o-meter dial, the Power Gauge Rating visually depicts the bearishness or bullishness of a stock. This rating is derived from analyzing a total of 20-different factors of a stock. Categorized into four-main indicators: financials, earnings, technicals and experts, each of these indicators (or indications) have their own sub-set of factors that make-up the reading.

Popularity

The machine learning algorithms measure the instances of M&A chat across public social media platforms to derive a popularity of the rumor rating. Stocks with a high score may have more activity but also may be reaching peak transparency, which may enable nimble traders to consider fading exhaustions. 

Scanners 

While it may not be a standalone stock screener, such as FinViz, Rumor Hound users do have the ability to customize the filters to refine the type of stocks that Rumor Hound uncovers. Rumor search criteria can be configured by volume, market cap, sector and location of headquarters.

Watch Lists and Alerts 

Traders can create or add stocks to watch lists quickly. Stocks on the Dashboard can be added seamlessly to watch lists along with Alert notifications delivered via real time e-mails and or SMS text alerts. When M&A rumor activity is detected on your watch lists or triggers filtered scan criteria, the platform quickly notifies you. As a rule of thumb, the tighter the filters, the more selective the results will be. This is true with all scanners.

How Does Rumor Hound Compare to Other Trading Tools?

The key distinguishing difference for Rumor Hound compared to other general scanners is the simplicity of purpose and function. The straightforward user interface and ease of use can’t be understated. This is not the typical function over loaded resource hog that requires more legwork to set up than to actually use. While it tries to provide M&A based movers, there may be other underlying factors like macro market conditions that may accelerate or blunt price action. Therefore, it still takes an experienced trader to distinguish the true drivers of price action. 

I like how the products provide links to the sources so that users can investigate rumors a little deeper to make their own conclusions. As traders, price action is the lifeblood of opportunity. Rumor Hound is simple yet powerful in its function and application. It focuses on M&A rumors, but traders should be focused on the drivers of price action. Seasoned traders often fade rumor based price movements and this platform can help to spot these stocks and assess the viability of the underlying rumor(s).

Is Rumor Hound Worth the Money?

The payoff for gaining an edge against the crowd on M&A rumors can be exceptional especially when getting in early. The Standard plan is a good value for most users. Active traders may consider the Professional plan to take full advantage of all the functions regarding rumor-based buyout trading. The more experienced the trader is, the more value Rumor Hound can provide. 

Is Rumor Hound Right For You?

The Rumor Hound platform is best for seasoned active traders looking to play the price action on M&A triggered price action. This means traders that are nimble enough to play both longs and shorts utilizing their own trading methodology. Newbies should avoid the mistake of jumping headfirst into a stock the moment an M&A rumor alert pops up. Users can easily gauge all fresh or old a rumor is and the track record of days until actual mergers and acquisitions came to fruition. It’s also a great analysis tool for rumors already in play. This makes it viable for investors that may not be as interested in the speed but more for the analysis and sources behind the rumors.