What was that I said about 'Groundhog Day' yesterday? Let's see, I can simply modify a sentence from yesterday to -- We're gapping up again and for the second third day in a row and the QQQQ is bumping up against the previous day's highs in the pre-market. This is why I always avoided swing-trading through earnings season. These gap opening would drive me nuts, even if I was positioned on the correct side of the gap it seemed that the gaps more often than not got faded.
Anyway, I'll be watching yesterday's highs on the QQQQ for a breakout.
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
Gapping down on disappointing earnings/guidance: JNPR -12% (also downgrades from Bear Stearns and Susquehanna), GM -6%, GNTX -5.8%, FD -5.7% (guidance only), PMCS -5% (also Deutsche downgrade), CRUS -4.4%, QCOM -2.2%, ILSE -13%, BC -9.5%, CAI -9%, SWKS -7.3%, FLWS -7%, BTU -5%, NE -2.3%, SANM -2.2%, D -2.1%, AMGN -2%, NOK -1.5%, UPS -1.5%, INSP -1.4%... Other News: FOXH -4.8% (mgmt changes), DDDC -6% (enters into consulting agreement with chairman), MXIM -1.4% (Pru downgrade), REDF -1.3% (profit taking after 27% move yesterday).
Gapping Up
Gapping up on strong earnings/guidance: SMDI +23% (also Mad Money mention), TWTR +23%, IFIN +17% (also RBC upgrade), CCMP +15%, TLAB +15%, KLIC +10% (also co to sell its test business), TRID +10% (also Needham raises tgt to $28), CNXT +8.3%, KOMG +7% (also Bear Stearns upgrade, Mad Money mention), SSTI +7%, SIMO +7% (up in sympathy: SNDK +2.1%), LSI +6.4%, NVLS +5.6% (up in sympathy: KLAC +2.1%, ASML +1.9%), ISIL +5%, CAT +4.4%, SPWR +4% (up in sympathy: STP +3.5%, ESLR +2%), IR +4%, LMT +3.8%, ALB +3%... Other News: ALXN +28% (reports positive results for blood treatment), FDC +10.5% (to spin off Western Union), NABI +8.4% (provides update on NicVAX program), WG +7.6% (Mad Money mention), TRBM +7%, DSCO +7% (gets fast track designation for Surfaxin), VRSN +6.1% (to be added to S&P 500), SUF +5.6% (bounces after recent sell-off), CEPH +5.3% (stock rebounds after co provides Sparlon details), CRAY +3.7%, AMLN +3.5% (announces Byetta Q4 sales), TEVA +3.3% (completes purchase of Ivax), WYNN +2.5% (tgt raised to $75 at Morgan Stanley), JDSU +2.3%.
Disclaimer & How I use this list
Mike,
It seems like a lot of your trading tactics are to avoid carrying a position through a gap. Do you think that there are certain environments or circumstances where you can anticipate and exploit gapping, or do you think that the risk vs. reward will always be too poor? Also, if you have had traumatic experiences with gapping, would you mind talking about them? I've been reading your blog for over a year and I've always wondered why you seem to be gun-shy of gaps.
-Jon
Jon,
Good questions. I'll answer them in a post over the weekend.
Thanks, I look forward to it Mike.