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Strategies & Market Trends : Aardvark Adventures -- Ignore unavailable to you. Want to Upgrade?

To: Saulamanca who wrote (5411)	8/9/2008 4:13:41 PM
From: ~digs	Read Replies (1) \| Respond to of 7944

For earnings plays... I won't say never.. I think you have to be Very discerning in your selection. It's hard not to get sloppy. Smallcap traders can often get caught off-guard by upcoming earnings. It would be best to visit earnings.com everyday if possible. Still, there's a lot of opportunity out there. So much so that I don't think you can skip earnings plays altogether. I think you set up some strict conditionals and get after it.. If we primarily involve ourselves in stocks that are in strong uptrends, their earnings will often reflect that. So too shall the content of this thread, for I have tried and will continue to post upside earnings surprises when I see them. The crowd psychology for a stock hitting new highs that has a recent history of upside earnings surprises is like that of no other. Ultra-bullish, no overhead. Positive sentiment abounds. Everybody's happy. I think if you can be in-the-money say about 3% , going into an overnight earnings hold.. and your stock is in a firm uptrend.. you might consider giving it a whirl. The crowd is often right and the rewards can be quite handsome. Do a search for FSYS on this thread.. I posted an upside earnings surprise in May (on the day that I discovered it). Check out the earnings reaction it had on Friday. Humongous! My DGLY trade , I could've done without. I've done well w/ this company in the past. I wanted to believe they'd see a postive reaction in price the next day. I had made a go of it the day before earnings and was within an hour, up a good percentage.. I decided to roll the dice and lost .. I knew however in the back of my mind that the stock had recently tested the backside of a broken uptrend line and had been turned back.. My hope was that it would gap up and over the white line.. For OME , the stock hit a new high before earnings.. then pulled back into a nice flag.. where I found it eod (and posted it here) .. if you then timed the broken 60min downtrend line correctly, you were up significantly at the end of the day .. it wasn't until later that evening that I realized earnings were coming up.. they were not on deck, but in the hole.. The next day it pulled back but a breakeven stop (plus commish) was not taken out.. And then the following day we got an impulse up and out of the flag on a positive reaction to earnings.. which IMO is arguably what to expect given the overall performance of the stock ENSG was another big earnings play this week.. Message 24823807 GLDD as well, but that one didn't make it to this thread.. it was however presented it in our little chatroom you're of course welcome to join us at anytime... #smallcaps on irc.othernet.org mirc.com I'm there 24/7.