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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: kha vu who wrote (71343)	11/14/1999 12:12:00 PM
From: Long John	Read Replies (2) \| Respond to of 120523

To all, a few current statistics on Earnings Plays that might help with some trading strategies. Average length of upswing for EP's from April to July was 14 days. Average length of upswing from August to October was 11 days. Perhaps Jenna knew the time was growing shorter when she switched to the weekly calendars again. She has been calling buy triggers an average of 4 days before earnings since August, and the average gain from trigger to the last close before earnings was 6%. Quite a decent return for an easy to follow strategy. Average earnings surprise of EP's that closed up the first day after the announcement was 40%, average surprise of those that closed down was 15%. This does not necessarily mean that larger surprises make for larger gains, but extreme surprises (>50%) do result in the most winners over the next 1-3 months. This is one criteria to look for in deciding whether to hold longer term. The best performing EP's in the long run after earnings are the ones that pop after the earnings report, then have a small correction about 3 days later. Buying after this pullback offers the best chance for gains up until the next quarter. There are plenty of other criteria to look for in picking intermediate term holds, but this chart pattern is quite typical, and one that Jenna has mentioned many times to watch for. John