Replies to post #721 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[jenna]

SLOT, IGT, ALLY SHORTS RIPENING? can the gaming sector be a core for short plays next week as traders/investors sell the 'highs' and look get on the bandwagon to the long side of tech stocks that are mere skeletons of their former selves? We can start by seeing if ALLY, a fine company with a huge p/e AFTER its earnings were out on Thursday, gaps up and sells off. SLOT was already on our watch list as a short. IGT Thursday, April 19, 2001 at 11:00 a.m., we might be able to time some shorts in this sector, which looks so, so ripe for more shorting. IGT is a lovely chart, to be sure, but is it not perhaps tottering on overbought in a market that is looking for 'bargains' and bubbles with the air sucked out? Let's keep an eye on ths sector for some possible downside. SLOT chart is deteriorating somewhat and with ALLY's earnings out and 'known' we might see pullbacks there.


ALLY great earnings reported on Thursday. Looks like ALLY did well but seems that it might be ready to sell off at this point.

[jenna]

OPWV..e-mails on this 'frequent watch list play'... At this point just when there are a lot of bulls out there and earnings are coming out April 18, we MIGHT have a bit more upside taking the form of an exhaustion move, until OPWV pulls back. OPWV is not easy to 'guessestimates' what the earnings numbers will be but as usual we are still playing that one on the long side until the trend turns, possibly as early as Monday. The formula by now is easy

1) if they meet or beat OPWV is a rocketship
2) If OPWV misses estimates even by 1 cent the stock will sell off
3) This is now a THIRD scenario, they could beat now but lower guidance and estimates for the future which could set up as another JNPR type of trade. Up the day after the report and selling off strongly at the spike high. OPWV was a "hope floats" stock a while ago, but moved up well enough to be considered a possible short play. Its not one we recommended holding long through this weekend, but it might gap up and still be okay for a while, but it might set up well as a short on the spike high, it will usually go in the direction of the nasdaq futures contracts.

[jenna]

PPDI Is is timely though? http://www.marketgems.com/PPDItimely.gif its great with A+ relative EPS rank 83 RS rank 89.. If you were a shareholder would you hold PPDI through earnings on Monday night? Is there some possibility that PPDI will move down on valuation or will there be something inherent in their report that MIGHT point to a lower earnings projection? PPDI has excellent growth, money flow is tremendous but this is almost TOO GOOD. Technical ranking at 99 is off the chart. But the last two days the narrow range spinning tops have lacked price action and this MIGHT be a short waiting to happen. I'm curious to see where this goes after earnings. If it moves up on Tuesday morning, then blimp status is still fine and investors will look away along as growth is accelerating. Let's see.