Buying CSCO the Day After Earnings Announcements

C

caplan8293

Today, CSCO released earnings at 4:30pm. They increased revenues but net income was lower because of a charge.

In after-hours trading, it is DOWN about 4%. However, I really do not think the news is that bad, since income was down due to a charge...

Tomorrow morning, I would like to open a position. Do you all think this afternoon's trend will continue down, or will people realize that the news is not that bad when the market opens and the price will rise?

I am totally confused. In a situation like this, would it be better to buy it, or short it? I know I could also not do anything, but I am just curious to your opinions.
 
If it's trending down - sell it.
If it's trending up - buy it.
If it's not trending - range trade it or scalp it.
Always use a protective stop.

Or do nothing with it - it costs very little to watch. :)

ps. I didn't vote
 
You might be right, but let tomorrow answer the question. 4% is a lot for CSCO, but it is not extreme enough to take the expectation of a countermove to the bank.

Betwer trade imo is to wait until after the open, if it gaps down, see how it handles the gap.
 
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