trading earnings

John · #1 (**permalink**) 09-07-2007, 04:27 PM

obviously stocks move the most and fastest up or down on there earnings calls. I'm looking for ideas on how to trade these, can be scary. I check earnings whisper .com they have a good calendar. Then I study the stocks to find a good or bad company. I've bought before and after earnings people are always nervous and even after good earnings they sometimes drop then pop back. Interested in any other ideas are out there when to get in or out when to short anybodys experience would be helpfull. thanks

chuck · #2 (**permalink**) 09-09-2007, 05:26 PM

That is what I have been putting on the board, all I am doing is looking for a 10% gap up or gap down from the previous day's low or the previous day's high.
If you have a company that has good earnings . The stock will go up most of the time. If you have a company with earnings that is down. Most of the time the stock will go down.

The formula that I use picks stocks that have at least a 10% move from the previous day's low or the previous day's high. Then I looked to see what has happened to the stock. What made it do what it did. I'm talking about the 10% move. It could be a biotech Stock that missed one of its phases, or it could be an earnings report or a oil stock that did not hit on a particular site. Just anything that makes that particular stock go up or down at least 10%. I can also change the settings to whatever percentage I want. Is this not what you're asking.

The entry point, and exit is a different story. Entry and exit points or something that we need to discuss . I do not know how you trade, that is if you are interested.

ron · #3 (**permalink**) 09-10-2007, 10:31 AM

I'd trade earnings only if I got filtered information from reliable sources...seems, street has a tendency to get really manipulative around co. reporting dates.

Dave · #4 (**permalink**) 09-10-2007, 10:58 PM

I'd say, if you see a company you believe in and it DROPS on the earnings, wait a little while and then jump in when it finds some support if you think the drop was overdone. Nutrisystem is a good example of that sort of thing right now...it dropped hard and had a real rough few weeks, but now seems to be picking back up from the lows.

But it really is a crapshoot. Baidu, a company I've been following forever now, took HUGE plunges 2 quarters in a row (from $90 to $70, and then from $110 to $80) before starting the medioric rise to the $200's...

Now, on the run-up TO the earnings, Ron is the grand master of that sort of play, and it's MUCH safer and can be very profitable.