Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

COST another gap up and ultimate 10:00 crap. The gap has half filled for COST and we suggested this morning's play would be bst prepared for a gap up and crap which is what we did.

May 26 2:11 p.m. New play COST

A gap down and crap is highly unlikely but you might prepare for a gap UP and crap but either way to disregard these huge mover would be a shame.



COST not posted today but COST did move down in March report but it was at a 52 week high at the time. COST setting up like lOW which could be either a multiple day of upside (after some profit taking the first day) COST has also taken out the 20 and 50 resistance area to upside and the June 35 puts are only $0.30 the June 37.50 calls are only $0.90 and even if all the options do is to keep you watching that stock in the morning, its worth it!!

OUR GAP PLAY reminder yesterday afternoon for our plays into today.

gap play tomorrow.

a) either you will get an early gap 'n snap or if it gaps 'n pulls back a bit (AFTER A GOOD REPORT) expect another bounce at the rising 20 or 50 ma on the 5 minute chart (similar to EASI on Tuesday) You will make more profit on a gap play for earnings than most of the momos out there (unless like MAGS we happen to tag a momo early <g>).

B) A gap down and crap is highly unlikely but you might prepare for a gap UP and crap but either way to disregard these huge movers would be a shame.