Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

QCOM! HPQ! SDS! WFMI! NVDA! earnings plays up...up and away. Good time for HPQ 1 week in front of its own report and we played that for DELL earnings (as well is its own next week) first thinking DELL might be too volatile today. MERQ, and SNDK from our continuing short the rally list stopped out however hard stops. Still not convinced the overpriced techs will hang onto recoveries, however there are plenty of companies we do like and don't see the market as a bull/bear debate (long or short totally) just correct stock selection ESPECIALLY DURING EARNINGS SEASON!




WFMI played just as we expected but was tracked very strictly this morning. We quite remember the huge gap 'n snap WFMI had last quarter, so we pick and choose according to techno-fundamental realities, and in the final analysis that is what works for us. (i.e. CI, CLX, MDT, CMCSA, MNST, LF all did well on the downside after earnings) CI is still in the doghouse and CLX down from 51 to a low today of 46.83). Traders forget that the bulls were the ones that kept on buying dips during earnings season (January 13 - Feb 5) and got burnt and finally closed positions at losses after buying dips over and over.

We bought this latest dip last Friday but locked into profits except a few earnings plays like NVDA, JNPR because of our vast experience with earnings and the tendency of the reports to separate the overpriced, overvalued blimps from the undervalued "gems"