Replies to post #18799 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[jenna]

THE CHANGE OF TREND INTRADAY: The beauty is that when earnings come out you are going to get volatility and ALWAYS a gap that you can work with. You can basically trade these intraday reversals off earnings plays and make your living trading using absolutely no other strategy ever! But we like a little more spice in our trading. We do a lot of homework in advance for the best potential GAPPERS and if you add the STRADDLES before the report you get to enjoy THE GAP ITSELF the next session. In some cases we hold the actual stock short (i.e. KLAC)

THE BULLISH REVERSAL INTRADAY



THE BEARISH REVERSAL INTRADAY

[jenna]

PHM the third gapper 'n snapper this week (SLAB, CECO and PHM) e-mail ALERTS were sent out last night on potential gap plays in PHM and VRTS and RNBO. (Also of course reiterated in the newsletter 2 days in a row RYL and PHM (today just PHM) We thought the PHM rally would last though until 10:30 and 11:00 but they are soaring simply because folks are not interested in buying BLIMPY tech stocks when the p/e of the building sector is so low. LEN puts 80 are probably gone with the wind, but heck 2 strong longs in RYL and PHM are well ahead of any loss in the PUTS.
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The ALERT we sent on the building sector

last night PHM....We ride a move up in the MORNING IF IT RALLIES IN THIS PRETTY DISMAL MARKET. We might still be able to short a rally. PHM always has extraordinarily high earnings (so does KBH, RYL and LEN)....

October 21 e-mail for RYL: Markets willing, you might want to jump in on an early uptrend that might last until 10:30 or so IN THIS SECTOR ONLY. By mid-day I'd look for shorts in the building sector (SEE THE RYL CHART in the newsletter.