Market Gems:Stocks w/Strong Earnings and High Tech. Rank Message Board

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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (18841)	11/19/1998 7:00:00 PM
From: Jenna	Read Replies (1) of 120523

Pictorial View of "Anticipatory Upswing" 5 earnings plays (long post) To answer the many e-mail again from newcomers about 'earnings plays' here is a 'graphical' example of buying a stock that is starting to rise on anticipation of a good report. Whether you use Market Gems lists or your own you have to decide when the stock triggers a buy signal. Same as with any stock you trade. It is easier before a report at least you don't have a stock stuck in a basing pattern forever. (you can but they should really be ignored). The stock should be held as long as the trend is intact. If the trend continues, for example, today BEAS trend continued and it closed almost at its high for the day you have a choice to sell and take a nice profit or hold through earnings which depends on your risk tolerance. A view of BILL and WIND in the days preceding report. Note that BILL has been almost constantly beneath the 0% line meaning no gains... look at WIND quicken.com Another view of WIND since the 13 Note the nice spurts of volume on the uptrends. quicken.com Heres a view of CACOA gain in points since November 13. CACOA DID NOT have anticipatory upswing, BUT the morning the earnings came out there was a gain from 10 to 12 3/4.. pulled back only to repeat it again for three straight days until finishing today at 14 3/8.. quicken.com So if you DON'T have anticipation but just follow the company through the report (as in SSW) you can get 'on board' after a good report since these stocks don't gap up as much as a stock like INTC or IDTC would. In this comparison between two winners WIND and TJX look at how the negative line is pressed against the floor signifying strong upward trend in both these stocks BEFORE the report. A good example of "anticpatory upswing" there as well. It would only be wise to get a stock that is trending for an earnings play.. You could then hold until the trend abates, through earnings or not. In the case of WIND the trend did not abate and holding through earnings (came out above) could give even more gains. quicken.com here is the same with three winners preceding the report and after. Notice how only CACOA dips slightly below the 0 line while the others are still positive. quicken.com Here is a pictorial view of BEAS that started a nice uptrend on Tuesday that continued through today's close. Here to a buy would have been fine and you could have elected to either sell today after the close with a nice 3 day gain or hold through earnings, which as I post looks like came in line with estimates. quicken.com Example of AEOS, another earnings play, that was on a 'one month long' rally and had positive anticipation and a run up before earnings.. quicken.com and ANF with an almost identical 'track record' of long rally and small but steady rally after earnings. quicken.com Finally SUIT, a play that comes in line with expectations and after a small retreat, it too had a small bounce from 24 to around 27. earnings.http://www.quicken.com/investments/charts/?symbol=suit&othersymbols=&mavg=NONE&period=1WEEK&ImgSiz=450x250.. results of companies that come in line are individual on a case by case basis.. Sometimes they tank and sometimes they go up. Either way it would take 1-3 days for 'investors' to discover it wasn't so bad coming in line and here you can 'get in' and profit. All these were variations of the same theme: Earnings Plays Earnings Plays are just 'possibles' they have a much bigger chance of giving good profits in a specific time frame than a random stock. They are chosen because of their high fundamental criteria (weighted 100%) and less (weighted 60-80%)so their technical position. They don't have to be Market Gems plays they can be your own plays the same rules apply. You don't buy unless the stock is on an upswing (you must decide using trading strategies what triggers a buy).. you sell when the trend abates (again your own strategies should get you out)... that's it...

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