AEOS downgraded here. We are holding a small position of TTWO for earnings, and we will increase the position if TTWO beats, but we also got the "anticipatory upswing" but to hold a company through earnings is too risky and not wise. We had SMTC for 2 days of upside and sold, SHFL for 3 days and sold, HOTT for 10 days and sold BEFORE the report. Holding through earnings is so full of risk because most companies sell the news. We picked up SNPS because we are in control of 1,000 shares of the stock with just a small $4k trade. GENE? who needs the aggravation, the puts are better than shorting the stocking. To play an earnings play, the BEEF OF THE TRADE IS:
a) before the earnings come out, usually we pick up the stock on a technical bounce 2-10 days before the report. With TTWO, WTSLA and HOTT it was at the PREANNOUNCEMENT that they would beat earnings. PREANNOUNCEMENTS are infinitely better to BUY long than th actual earnings report. A preannouncement of beating the street, lasts up to 3 days while the report itself at the very best is a gap 'n crap and at the least its a downgrade and crap especially if you get a DOWNGRADE. We picked up MCDT and RETK on the day of the preannouncement and they were good for up to 4 days and will probably repeat their move up on every nasdaq rally.
b) after the volatility returns to normal (i.e. ATVI, LE, VRSN, TMPW etc) and we hold for swing trades because ANY and EVERY company that beats estimates will MOVE UP ON EVERY NASDAQ RALLY, even just as the nasdaq turns and could also buck the trend, but holding a stock position through earnings and risking a sell off, is not good strategy. |
