At the instant the numbers are released millions of buy/sell orders are executed
Impossible to try to time it
Impossible to try to time it
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Earnings reports- Why do they seem to to trash stocks
- Thread starter JimBob56
- Start date
I've been trading earnings reports for a number of years now. As someone said anything can, and it does happen. I only trade after the report comes out. Earnings reports arre good because they can create a lot ot price volatility. I only trade stocks that had received positive earnings news. Some stocks gap up and keep going. Some gap up lots and then drop like a stone after the open. They all move any number of ways during the day. If you stick to a solid, simple game plan through thick and thin there is good money to be made.
A good example that I have traded several times over the years is DELL:
Buy first thing Monday morning and ride it up to Thursday afternoon, then sell....DELL always releases earnings after the market on a Thur....
It's not much, but can be good for a 1 or 1.5 point move....1000 shares...pretty safe trade...just be out before earnings release
SteveD
Buy first thing Monday morning and ride it up to Thursday afternoon, then sell....DELL always releases earnings after the market on a Thur....
It's not much, but can be good for a 1 or 1.5 point move....1000 shares...pretty safe trade...just be out before earnings release
SteveD
some ideas:
http://www.marketwatch.com/News/Sto...4C18-AEE5-C2AB126B1588}&siteid=yhoo&dist=yhooQuote from JimBob56:
MTG down 5% on open. Decent earnings
http://biz.yahoo.com/ap/070412/genentech_ahead_of_the_bell.html?.v=1Quote from JimBob56:
DNA down 3% on excellent earnings
http://biz.yahoo.com/ap/070412/cost_plus_restatement.html?.v=1Quote from JimBob56:
CPWM down 5.5% on open on sub par earnings.
Quote from jts:
I've been trading earnings reports for a number of years now. As someone said anything can, and it does happen. I only trade after the report comes out. Earnings reports arre good because they can create a lot ot price volatility. I only trade stocks that had received positive earnings news. Some stocks gap up and keep going. Some gap up lots and then drop like a stone after the open. They all move any number of ways during the day. If you stick to a solid, simple game plan through thick and thin there is good money to be made.
Interesting post and interesting how you only trade after the report comes out. I have one question. Do you trade GOOG when earnings get released?
If goog does the GAP 8-10% thing and then stays flat the whole day I will buy a ***load of shares
I know that a flat gap up day for goog is very bullish
Google had a flat 8% gap up on Oct 2005 and it proceed to rally from 330 to 475 in just a few months
And it had another flat gap on OCt 207 earnings and it surged from 450 to 513 in just a month hand a half...
The buying energy is huge between the gap. It would take immense selling to fill the gap which is why it is a godo idea 2 buy the goog gaps.
i know how stocks work
I know that a flat gap up day for goog is very bullish
Google had a flat 8% gap up on Oct 2005 and it proceed to rally from 330 to 475 in just a few months
And it had another flat gap on OCt 207 earnings and it surged from 450 to 513 in just a month hand a half...
The buying energy is huge between the gap. It would take immense selling to fill the gap which is why it is a godo idea 2 buy the goog gaps.
i know how stocks work
you have got to know what the heck you are doing in order to trade earnings..for example,a company beats by .04 but guides down;its probably gonna take a hit..a company beats and guides in line but takes a hit;the company normally raises guidence so the street is disappointed and sell the stock.a stock beats and raises and the stock gaps up 3 points the next day but gradually sells off; the stock probably had a run up already. they beat and raise and the stock immediately sells off; the company mentions margins are going to come in lower. great example-LRCX...they beat by .09 and beat revenue as well. they raised guidence and the stock still sold off..why? they mentioned bookings will be lower..that signlaled to the street that earnings may have peaked. if a company beats,raises,and margins are good and the press release is possitive,backlog is strong,continued strength ect...i will buy it as long as there was'nt a big run up . anyway,earnings are tough..the most money is lost during earnings.thats a fact.