Replies to post #17005 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[jenna]

INTU down on downgrade of software sector. Still holding some 45 September calls. Its easier just to short an earnings failure like HD (was that really a failure or just profit taking? Still short HD with stop @ 32.50) I would look to buy off support intraday or short a failed report in the morning or after hours Afterhours should be clearer which direction INTU takes. INTU is a card carrying member of the SWH sector.

In the event that INTU gaps 'n snaps, it will be easy to enter as well. No real need to hold through the report. We can always look for moves precipitated by earnings reports after the fact much like BJ, ELBO, HD etc today.


08:53 ET Merrill Lynch upgrades Hardware sector, downgrades Software
Based on the monthly reading of firm's TechStrat Sector Model, Merrill Lynch is upgrading the Hardware sector to Equal Weight and downgrading Software to Underweight; says investors should by the "IAH" exchange-traded funds to reflect the Hardware upgrade and sell "SWH" to reflect the Software downgrade.

[jenna]

Into the Close Possible Reversal: LEN and builders.
We had this as a 2-day hold after a bounce off the 62% retracement area, but sold it on a pullback. Builders esp. LEN are now bouncing off the 50% retracement of the May super-move up. Might be a sector to consider for more upside tomorrow.