Good day, MarketClub Members! So, what do I mean when I say 3 for 3?
1: Let's start with Apple, Inc. (NASDAQ:AAPL) - The Trade Triangle technology indicated that the trend was heading lower and Apple was most likely to report disappointing earnings. That is exactly what happened when Apple reported its earnings after the close on 1/26/16. Apple opened lower the next day giving members another winner and profits up to 92% on options trades.
2: Next I recommended that a sidelines position was warranted in Amazon.com, Inc. (NASDAQ:AMZN) as the Trade Triangles were mixed indicating that there was no strong reason to take a position. The trading hours before the close showed Amazon up over 9%. Reality kicked in after the earnings announcement as Amazon gave back all of its earlier gains justifying the sidelines position.
3: Alphabet, Inc. (NASDAQ:GOOG) - Yesterday a weekly Trade Triangle turned green aligning with the monthly Trade Triangle indicating a long position was warranted. Members were rewarded as Google jumped $40 in after-hours trading giving members another winner.
Today, I'm going analyze three stocks that are releasing their earnings after the close today. I'm going to see if I can determine where the stock is headed after earnings.
I'll be using the Trade Triangle technology to help me analyze the direction of the market in a very methodical way, all before the companies report their earnings.
Here is what the experts are estimating for earnings for each of the three companies. Autodesk Inc. (NASDAQ:ADSK) estimated to earn .08 cents a share. The Fresh Market Inc. (NASDAQ:TFM) estimated to earn .22 cents a share and The Gap Inc. (NYSE:GPS) estimated to earn .63 cents a share. The earnings are a consensus view of many analysts that track these stocks. Continue reading "Can Earnings Be Predicted?"→
Today, I'm going to investigate whether or not MarketClub's Trade Triangle technology can predict stock earnings.
To do this I randomly chose 7 stocks that just reported their Q3 earnings. Here are the rules I followed for taking or not taking a position in a stock before a company announced its earnings.
Long And Short Rules
Use the Trade Triangle technology to determine how you would have been positioned in each stock before they announced their earnings. You are looking for uniformity between the monthly and weekly Trade Triangles, i.e. a matching monthly and weekly green Trade Triangle would indicate holding a long position before an earnings announcement. Conversely, a matching monthly and weekly red Trade Triangle would indicate holding a short position before an earnings announcement.
When there is a conflict between the weekly and monthly Trade Triangles, a sideline position is in order. For example, if a monthly Trade Triangle is green and the weekly Trade Triangle is red, it would indicate a sideline position.
It's been a wild ride for Wall Street this past week as the broader indexes collapsed for several days before rebounding sharply back to the upside. The short correction was mostly blamed on the fallout from the Chinese stock market crash which triggered panicked selling across all assets and dragged down every segment of the stock market. But panic selling can be a great buying opportunity for value shoppers.
Sometimes a perfect storm can take a stock way down below its fair value. An earnings miss combined with a macroeconomic crisis can amplify losses well beyond a reasonable range. However, if the long-term fundamentals hold strong, investors can pick up a great value buy at a discounted price.
A solid company in the wrong place at the wrong time
The Fresh Market (TFM) is a grocery store with 168 stores in 27 states known for its organic foods selection. The stock has suffered mightily this year – down roughly 50% year-to-date. The company's recent earnings miss coupled with the recent events in the global financial markets have contributed to the stock's weakness. Continue reading "This Grocery Stock Could Be A Steal At This Price"→
When the broader stock averages all fall, savvy investors can find winning companies by watching for stocks that show a gain when all others show a loss.
Concern over the state of the global economy sent markets plunging on Friday with the S&P 500 shedding 3.19%, the Dow losing 3.12% and the NASDAQ dropping 3.52%. Stocks like Valero Energy and Ross Stores fell over 9% and further corrective activity is expected to follow next week.
But not all stocks are facing negative pressure. One company is the growing data storage field showed promise and lifted expectations following a surprise earnings beat that helped the stock gain 8.95% on a day where most others fell. Strength in a difficult market environment is a good sign of a solid company and could provide a safe haven for investors looking for bullish plays right now. Continue reading "Find Winners On Down Days In The Market"→