Resisting the Spell of the Big Reports
Days can get hectic during earnings season: When a single name dominates the headlines, it's easy to let the stock's action or reaction also dominate your attention. As the major financials report, it is difficult not to watch the action -- and that becomes nearly impossible on reports from big tech, as in Apple (AAPL), Google (GOOG) or Facebook (FB). But, amid the bevy of earnings reports, remember there is still a broader market made up of many different stocks that continue to trade. Those other names can provide you with opportunity as mass focus shifts to a single major report, much like the Eye of Sauron on the One Ring.
When I'm looking through charts, my own preference is always to find one long, one short and one potential long volatility play -- and then to work my way out from there. If I'm not able to find one of each in a fairly simple fashion, I'll take a step back to check the broader-market correlation, comparing several names with different major indices. Sometimes it is just easy to trade a major index or two, and often that is the case when I can't easily find different plays. Of course, "easy to find" doesn't mean profitable; it does not guarantee that the setup will trade, nor that you'll make money from a trade based on that setup's trigger....524 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.