A Pair of Earnings Plays
Apple (AAPL) refuses to participate, Bank of America (BAC) is weighing on the financials, and the iShares Barclays 20+ Year US Treasury Bond Fund (TLT) is heading higher. But in the wake of all this, equities as a whole continue to push. This is what earnings season can do. We can put aside Europe and non-reporting names as an influence now that we have expiration and earnings, but I don't expect this waning effect to continue past this Thursday or Friday.F5 Networks (FFIV) Source: StockCharts.com View Chart » View in New Window »
F5 Networks (FFIV) is a name I'll often play into earnings season. The big upward move today was actually what I was looking for on a positive announcement, so I had to go back to the charts. With the move today, I would adjust the upside potential into the $105 to $107 area with $94 being the expected downside, although $90 is possible. Without today's move, I expected a bit more of a muted reaction to earnings. While the initial reaction may be muted, this is a name I will look to trade on follow-through tomorrow. FFIV has a nice habit of continuing its earnings move throughout the day following earnings. Of course, this does not occur on each occasion, but the odds favor a follow-through as it has happens more times than not....208 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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