Starting with $AA tomorrow after the close, earnings season should offer more volatility than what we have been seeing in the market. I strongly believe that you should have 5-10% more cash on hand than you are normally comfortable having, so that you can better take advantage of the swings, rather than them taking advantage of you. Unless you have illegal insider information (in which case, be prepared to have some fun at a Federal pound-me-in-the-ass prison), playing earnings offers you no edge as a trader. Therefore, you simply should not engage in that kind of roulette. I also believe that you should be cognizant of the schedule for earnings releases for every single stock in your portfolio, to avoid unpleasant surprises.
With that said, the overall market still looks healthy. Like I have said in previous posts, I do not expect to see some serious supply hit the market until around the 1220 level on the $SPX. (See Chart Below)
Because we remain in a bull market with healthy technicals, I like the following setups for this week. As usual, feel free to pick and choose which ones best suit your style. Keep in mind that despite the favorable risk/reward of high bull flags, there is always a possibility of failure. So, please use stop losses to minimize your downside risk.
great posting, here… thanks for all the info you share!
duane
awesome, thanks for reading
Chess,
I am sure many more read than reply. Been following you for awhile and always look forward to your setups. KOPG is now the best blog on the site. Thanks for all your time and effort.
Stevo: Too kind my friend. Too kind. Really appreciate that. Thanks for reading.
Also, check out $DKS http://chart.ly/88g776, as well as $DMND http://chart.ly/xqb2xp
Great setups But to say that earnings offer no tradable opportunities is wrong in my opinion. Google PEAD, post earnings announcement drift. An anomaly that has been proven to work.
Fair enough. You can find exceptions here and there, and if you do by all means bank some coin! In general though, I shy away from pure earnings gambles. I appreciate you reading. Thanks.
Your setups are rockin…keep it up! Seriously, you might want to start charging for this stuff!