Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

Promising sets ups for next week: Shorting Opportunities abound after Overbought stocks rally into resistance.

We have been shorting all along at morning reversal periods (10:30 to 11:00) after Exhaustion moves of upside but the moves now might be even more profound as market internals should continue to weak. Longs following gaps 'n snaps which were rare last quarter are starting to appear more and more frequently (PEP, DHI). Gap fills are still our favorite strategy (TSG) for going long without having to 'endure' the downside of the gapdown (i.e QLGC, QCOM ELX)




Here are "real" short trades stemming from this pattern

This chart pattern 4/16 led to shorting at 10:30-11:00 for that 163 point pullback
In this situation for the second time this month we were long going into the day and took profits before shorting this rally.



Breakdowns such as this were traded
They could be expected to begin in an earlier reversal period this oncoming week.



One of our favorite pattens worked with eBAY in this real trade scenario