To: Sultan who wrote (4777 ) 1/16/1998 7:20:00 AM From: Jenna Read Replies (1) | Respond to of 120523
General Comments on Earnings Results. In the next few days I will be analzying some of the best stocks of different sectors. There are still very good reports rolling out from lots of sectors besides technology as in the cases of BOW, AHA, ACF, STT, ETH, BBY etc. After earnings are reported and if they were a surprise of 2 cents or more, I put these companies into a semi-permanent watch list until next quarter. Whenever I do a general evening scan, I scan those for 1/30 volume ratio of 150 more than normal + any breakouts best of which for me are moving average, Price/Volume Breakout, MACD etc. If they come up then I watch them the next day. I've done this numerous times with SEBL, TKLC, QCOM, IMRS, CHRZ, TECD, IMIC, CLCX, AEOS, ESCMF, OATS and a couple of dozen others. After pullbacks below their 7 day moving average, lasting up to 5 days they usually continue to climb, especially with positive movment in NASDAQ. In these days when lots of stocks rise, I like to have the biggest risers that rise more than 1 1/2 points a day. In leaner times, I stick with "news" stocks or general momentum trades that look attractive. The nice thing about Reuters is that the instant positive earnings come out, I can buy the stock and I have done that. Remember, an earnings report does not mean BUY before earnings come out... You can also buy AFTER earnings come out, if you are quick enough, but if not, wait until the stock pulls back and then get in... There will always be opportunity to get into a company that has a good report. I find the best daytrades I make are usually the day the report is due out either during the trading day (not before) or after the close.... there is usually heavy activity either in the stock or the options and you only have to check the historical quotes on companies like BBY, SEBL, ETH,DEC to observe this pattern. PWAV had very unusual volume the night before and in the last 1/2 hour of trading was already down nearly 2 points. The same holds true for the volatile oil sector.