Intel, IBM and Yahoo reported their earnings after market today. IBM dropped a bit after market but Intel and Yahoo went up. Well how they are being traded tomorrow will be quite informative. If they see downward pressure more than upward definitely is not good. I would say, stocks go up with good news is only good, not great. Well, better than going down....
TASR dropped relatively more than the market with lower than normal volume and stayed above 20-day EMA. Some people said it's due to option expiry this Friday and some managers are playing game on it. Well, today's action sure is not good, but a stock cannot always go up. I'm closely watching.
CEDC brought me good news, although it retreated a bit lately, at least it's now back above the 20-day EMA.
Both LOCM and EFUT still lagged with low volume. Nothing to say for now but will keep a close look at them, specially EFUT.
One name I really want to mention here is ERIC (Ericsson), it dived 23.5% today. It broke through all 4 EMA I use and it made a new 1-year low due to bad earnings. I want to mention it because just right before today, its graph looked pretty good. All 4 EMA were moving to the direction that can generate a buy to me. It taught me a lesson that do not bet right before earnings report even the graph is going that direction, let the earnings report confirm the trend first.
Well but what if I already own the stock? A bad earning report sure can break the trend suddenly and creates the gap risk I mentioned before. I think in this case you either sell before the earnings report or purchase an out-of-money put option. The put option should at least heal part of your pain.
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