Tag: earnings season

Investors: Prepare For A Bumpy Earnings Season

Posted on by admin

By: David Sterman of Street Authority

The chickens are coming home to roost. After a remarkable eight-month rally in the dollar, many U.S. firms are finally feeling the pinch.

In the near-term, investors need to brace for a cautious earnings season. Yet, as I'll explain in a moment, there are still ample reasons for long-term optimism, especially when the dollar loses momentum and/or the global economy starts to rebound in earnest.

The strong dollar, which blunts the competitiveness of American firms, both at home and abroad, will have a clear impact on first-quarter results and forward outlooks. According to FactSet Research, 85 companies in the SP 500 have already warned of a Q1 profit shortfall, while just 16 companies have pre-announced that results will be better than expected. If that figure of 16 holds, it will be the lowest number since the first quarter of 2006. Continue reading "Investors: Prepare For A Bumpy Earnings Season" →

Tesla Disappoints And How The Trade Triangles Saved The Day

Posted on by The INO.com Team

Yesterday we discussed how the Trade Triangles can help you take advantage of earnings. We had a lively discussion on the blog, with many members asking and explaining how the Trade Triangle technology works during the earnings season.

This morning I randomly picked out four well-known stocks that reported yesterday, they are: Continue reading "Tesla Disappoints And How The Trade Triangles Saved The Day" →

How Not To Be A Patsy During Earnings Season

Posted on by admin

By: Tim Melvin

There is an old poker proverb that has been quoted by everyone from Warren Buffett and Marty to Whitman to Amarillo Slim and Whispering Saul that applies to trading around earnings season.

If you have been at the table for a few minutes and have not yet figured out who the patsy is, get up and leave. You are the patsy in the game. Every earnings season there's dewy-eyed traders rushing out to beat the market and pile up a fat stack of profits trading stocks and options based in earnings reports.

Everyone thinks the game is winnable and there will be boasts of great winners and successful trades over the next six weeks or so. You will not hear much discussion of the losers -- but then again you will probably never meet a losing poker player in your lifetime either.

The odds are stacked against the patsy in a very big way, especially those using options to make bets. Stop to consider for a moment exactly what you are trading in earnings season. The patsy is making a bet on a guess on how much the Wall Street analyst's community guess was off in either direction. Continue reading "How Not To Be A Patsy During Earnings Season" →

How will the sectors stack up in Q2?

Posted on by The INO.com Team

It's earnings season and the major indices are up on high expectations - the Dow closed above 11,000 or the first time in 18 months and the S&P nearly hit 1,200 - but are these numbers sustainable? The talking heads are hedging their bets based on how the individual sectors perform in the coming weeks and months.

Weigh in below on the sectors you see winning and losing in the second quarter:

Have more to say or did we leave out a sector you think will make a difference in the near-future? Let us know in our comments section.