Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

DNA that gap up this morning was pretty extreme to those that were long. Usually (like RIMM) I take profits at a gap up especially when the high is above the previous day's high and when the market internals are deteriorating. Its really important to recognize when there is a gap up and knowing folks that held overnight are going to want to lock in profits. I do expect a rebound in DNA in the 36 area and this too is looking like APOL. I was not bullish on the techs even through the rally, but I went along with it (sure did with QLGC and IBM) but I never thought for a moment I'd hold really heavy positions overnight and in fact I held nothing. For DNA and the biotechs I have the opposite opinion, namely that pullbacks might turn into buying opportunities.