Be Wary of Current Leaders
Remember earnings reports? In another 30 days, we will be steeped in them. They are the single greatest predictor of stock movements, as the ability of inability of companies to beat sales and earnings estimates and to guide higher or lower when they report often controls whether a stock goes up or down.
If a company is able to beat expectations on its top and bottom lines, then it will likely go higher. If the company meets expectations the majority of time, it tends to fall ever so slightly. And if it fails to beat them or falls far short of them, then the stock is crushed....451 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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