Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[Profit_Ace]

Sage advice for those trading GOOG. Courtesy Cthruu

http://www.siliconinvestor.com/readmsg.aspx?msgid=20707093


Trading parabolic runs:

This is a lesson one should not forget. I am posting my past experiences - the stocks that made parabolic runs come down just as fast. Therefore one must respect a reversal stick from an exhaustion gap - or as Steve Nison would say, a "dark cloud cover".

The charts show IOM in 1996; QCOM weekly in 2000 and GOOG now. Everyone knows what happened next in cases of IOM and QCOM. If not, ask me and I will post follow up charts for those.

My next move will depend upon what GOOG does over the next couple of days. If GOOG makes another gap up and fails, I will be short. If it tries to reverse up from here, I will stay with it - look at 10/20 and 10/21 when they tried to shake off the weak hands if front of the earnings. If they are inside days I will stay put. Ready to turn on a dime - or in GOOG terms, a few dollars. This was one of the reasons why I unloaded a bunch of ITM calls yesterday.

I do not want to forget the lessons that keep on repeating every four years.

Just my opinion :)