Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

LF, MNST, GRMN, PFCB, KLAC, MERQ and some others continue down after the close. WFMI nice gain intraday and we'll see where we are tomorrow. HPQ and WFMI first tier straddles. Looks like those earnings plays to the downside will continue to bite down despite the up market so we might have more than just one day tomorrow (options expiration is next week, which is great allowing for even more pullbacks in the likes of MNST, PFCB, LF and one we are waiting for tomorrow morning another net by the way! Stopped out of MERQ short after the exhaustion move today to downside however I wouldn't be at all surprised that the really weak charts like KLAC, ELX, QLGC, maybe even SNDK might be shortable although really we are more interested in earnings plays. We did call QCOM long today and have that as a LONG SET UP, we're not bearish on the market, just on earnings plays that gave us just cause for nearly 6 weeks to be short any and every rally after considerable gains on gaps 'n craps and option puts.

It takes a while to change a mindset when you've done so well on the short/put side.

Note the big double digit moves in LF and PCLN were way more exciting than the minute moves in some techs, but we do read and we're on top of all the moves not to disparage poor SNDK which is making a really brave attempt to hit 55.