Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

SNDK is a potentially a loser, relegated to the "long term daytrade' the direction it happens to take by 10:00, we have no targets for upside and as far as it looks its a short the rally play. Although we had it as a long on Friday, we had it as a short today on the continuation play for 'pause that refreshes' to short the rally as SNDK continues on with downside on a relatively strong nasdaq day. THERE ARE MUCH BETTER LONG PLAYS than SNDK..much better. I certainly wouldn't fall in love with SNDK. We have some under $25 earnings plays that are already up 5 to 6.50% today and are looking at potentially good earnings (although we are buying the 'anticipatory upswing' we will take profits before the report and settle into a SAFE straddle)

10:00 is best time to begin to trade SNDK.. not before! Another good entry area is the break of the 20 ma on the 5 minute chart and this might mean 9:50, but conservative players are better off playing the 10:00 period. the 20 period moving average is usually a FAILURE PATTERN and can be looked at for further breakdowns from there. SNDK is looking like JCOM, AMZN, CCMP, KLAC, INTC and many of our short the rally plays. Good for some upside that will be shortable (instead of buy the dip its short the rally) Once a stock gaps 'n craps after earnings money is not likely to flow into for more than a buy at support but quickly sell at the resistance areas. For our earnings plays like INSP, CREE, CNET, NFLX, and SLAB its quite the reverse. (A bounce off the rising 20 day ma is perfect (pause that refreshes) for more upside.