Replies to post #21088 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[jenna]

ERES its not over. Anatomy of a gap 'n crap (like a Mexican jumping bean it wouldn't stay down or up) This can be attributed to the huge 105 p/e. This gap 'n crap is not usual. Usually the gap moves lower and doesn't recover until about 11:00 enabling better than a "V-shaped" recovery that was too quick.

...."ERES rose 1.52 to 35.56 on double usual trade. The medical software maker earned 15 cents a share in the fourth quarter, tripling last year's result and 2 cents above Wall Street forcasts...."


Straddle in ERES, February 35 calls cost $1.50 this morning able to dump them at $2.05 and $1.70. The puts were $1.75 and now are around $1.65. Position $3.25 some 9% profit taken off ERES Yesterday (calls)from the nice move Monday/Tuesday however the better gains must come in this case of a gap 'n crap 'n recovery from intraday moves and that is not always easy. We did send out an intraday chart to make it easier (ERES was posted as a straddle) but in some cases when the gap 'n crap is not CLEAR CUT, you have a challenge. In most cases, the move is clear and one trend lasts long (UTSI, JCOM after the report) At this point Out of the ERES calls not such a hot profit, holding the puts about even and I'm relegated to play this for a while intraday with a chart pattern that could be better.

ERES was great for "anticipatory upswing" however this time the straddle was difficult. Stopped out of two shorts (the first better than the second) and will continue playing the trend again. With the increased volume, there should be no lack of interest in ERES tomorrow.

The stochastics showed all the signs of a bearish divergence, but ERES just wouldn't retest 34.50. We call it "scalp" and move on well maybe, but I do plan to get more out of ERES this week and it just might be ON THE LONG SIDE. I'll take any direction as long as it lasts more than 40 minutes.



The "gross move" taking the anticipatory upside was fine, but this time we didn't get quite the big move I wanted....yet. Certainly not a SINA, NTES, AVNX, SOHU play which all went like clockwork.