Forum Archive Index - July 2000

[jesse <johne777@hotmail.com>]

Hi Moose
did you buy for earnings? Short term (US) traders often buy into
earnings, but almost always sell the day before the announcement. Unless
the results are exceptional and the market is ok, the odds are heavily
against you if you hold over the announcement. Your result was good, but
thats not enough to rally normally, and the market was trending down.
And the better the rally into earnings, the more likely it goes back on
earnings announcement, and the harder the fall. If you look at an
example like Yahoo (YHOO), with the exception of the last quarter,  it
followed the same trend for the previous 6 quarters. It rallied by 40%
in the 30 days before announcement, then sold off 30% in the 30 days
after the announcement.
Be careful from here. I'm not long anything, just trading intraday or
buying put options.
see ya
jesse


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