The earnings season will kick in to full gear from this week onward with major earnings releases scheduled this week. Regular readers of the blog are well aware of my hunt for opportunities during this period.
One of the key difference in the earnings strategy which I have detailed several times is that it is reactive strategy. Much of the anxiety during earnings season is from those holding position in to earnings or those trying to anticipate earnings. Conventional wisdom is that earnings is very risky period and trading earnings is like playing lottery. But there is more to it than that simplistic scare mongering.
Buying post earnings is low risk strategy. The event risk is out. Plus if there is substantial earnings acceleration, the price will continue to move in intended direction till next earnings season. Many times if you catch a first earnings acceleration after long period, you can hold the stock through next earnings season and benefit fro the gaps.
Many of you have requested putting a earnings data together and to identify earnings play based on after and before market earnings releases. Some of you had emailed me sometime back volunteering to build such database if others are interested in the same. So if you are interested in the same send an email to me. Only those who can dedicate 1 hour to this should volunteer.
The job would be to compile the earnings meeting criteria in to Google Spreadsheet from IBD and WSJ. I will not be present during the entire earnings season, but if there is enough volunteers, in next couple of weeks this can be streamlined and benefit everyone.If you had emailed me before to volunteer, please email again, as I have not tracked those emails. We have enough volunteers. Thanks for your interest.
7 comments:
I get the following error when you blog loads - "AJAX search API Load Failure: invalid api key supplied."
Error started this week.
Interested on your thoughts on ARTW and LPHI?
Hi Pradeep, do you trade during premarket or after hours for earnings play? What's the pros and cons of it? Say if the earnings announcement comes right after the market close, and it has met your criteria, would you try to enter the position as soon as possible or wait until the next morning? It may gap up even more. Same thing in premarket for early morning announcement? Thanks a lot!
Bill
I do not know what is causing that error.
Dan
Will comment in detail when I do my Opportunity Buffet post. ARTW is buy it is in EP scans. LPHI, too late to get in.
gnib
I try and enter as soon as possible if I am watching pre/after market.
Pradeep:
I get the same error as Bill. "AJAX search API Load Failure: invalid api key supplied." I use a windows vista on a new computer (less than 3 weeks old).
If you need volunteers, count me in.
The recent search box launched by Google for blog was producing that error. I removed it. Now try.
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