The Stock Exchange is all about trading. Each week we do the following:
- Discuss an important issue for traders,
- highlight several technical trading methods – including current ideas,
- feature advice from top traders and writers, and
- provide a few (minority) reactions from fundamental analysts.
We also have some fun. We welcome comments, links, and ideas to help us improve this resource for traders. If you have some earnings season ideas, please join in!
Our last Stock Exchange discussed the challenges of trading geopolitical risks. If you missed it, a glance at your news will show that the key points remain relevant.
Next week Blue Harbinger (AKA Mark Hines) returns as our guest expert. He consistently generates interesting and successful ideas. I cite his work regularly, and he was first-rate when we had him last. Readers will enjoy his unique contributions.
This Week – Can You Profit From Trading The Earnings Season?
Four times a year there is a confluence of corporate earnings reports. It can create turbulence for the overall market as well as the individual stocks. Is there anything we can do to take advantage of this avalanche of breaking news? We have advice from several experts, and some special resources.
Trading Tips For Earnings Season
- Fidelity Investments offers a comprehensive guide, beginning with your own earnings forecast.
- Investopedia also has an overview of strategies.
- Goldman Sachs shares ideas for playing the current low volatility. While the examples are from last quarter, the concept is easily updated. We looked today at the weekly options in JPMorgan (JPM). Earnings are out tomorrow morning, and the options expire in the afternoon. Today you could have bought an ATM straddle. (If you do not know what that means, you should not be trying it). It would have cost about $1.80. Based upon the last three earnings reports, you might have made money on a play like this, but you would need to be agile and accurate in trading the…