Earnings continue to drive the markets and its been a wild season. The most blatant is GOOG missed earnings but FB beat! I doubt anyone saw that coming. A matter a fact , I was asked all day in the trading room what was going to be the biggest earnings miss tonight. I stated Facebook. The bottom line with earnings is we can extrapolate past performance and data but no one really knows until its actually released. This is why playing stocks solely on earnings can be dangerous. Its important to note. The best way to play earnings is to allow them to be released and then look to enter your trades the next day. Anything else is speculation. No one can determine every quarter of a stock every time and if something is not able to be repeated its impossible to use to make investment decisions. That is speculation. That said once a company beats earnings such as Facebook after two quarters of poor performance investors take note. We see a switch in a name from fear to FOMO ( Fear of Missing Out). This is important because it spreads. We can see larger funds second guess wanting to be in AAPL or ROKU tomorrow for earnings instead of hedging. It becomes a self fulfilling prophecy. Another example is Energy. The subsector of coal is the best performing asset class of the year. We recently pulled back to 50 day moving averages and after a couple good earnings , the sector is on fire again. Side note: BTU comes out with earnings tomorrow morning. Bottom line earnings drive demand. Demand is created by buying. Don’t Over think it. In regard to the indexes and sectors. Take a look at the charts below everything is marked off and there are notes on each chart. Also consider watching the video attached below. I cover the big movers after hours and earnings plays tomorrow night. Let’s get to it.
Let’s Look at Our Indexes!
Let’s Look at Our Stocks! - As the Indexes bottom more names will be added
Subscribe and turn on notifications. There is a new daily video after the market Monday through Thursday! It’s called the Top 5 in 5. It consists of the best five ideas for the next day and I condense it into 5 minutes. It’s loaded with actionable ideas. It’s worth your time. It is hyper specific and actionable with entries and exits marked off. Tonight’s includes several Longs and Shorts When you subscribe turn on ALL notifications so you are notified of the daily Premarket live shows ,Top 10 Weekly Buy List and educational videos. Also, Once subscribed you will receive private content on YouTube make sure all notifications are turned on so you receive it. The video below is the Top 5 from tonight and focused on actionable ideas based upon the indexes and sectors today. Pay close attention to what is said about the FACEBOOK LEVELS and the rally After Hours.
As always all investment decisions need to be made by the individual. We all have different risk profiles. No two people trade the same. Understand the buy points, stop losses, trims are suggestions. You need to develop your own process. I am willing to help. If you have questions email me Arete@Aretetrading.net. For example, to stop losses, I like to see them close. That does not mean that fits everyone’s risk profile.
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