Might Makes Right

Strength is rewarded, and weakness continues to be punished. Even into earnings, buying strength has been the right move. You look at the names that have gotten the biggest beatings during earnings season so far, and the list is littered with stocks that were already performing poorly this year. The biggest winners were names already up by 20%, 30%, 50% or even 100%. Some of those names already ran 10% or 20% into earnings.

There has been an absolute lack of sell-the-news, and that makes trading earnings even more difficult. The moves by Facebook (FB) and Yelp (YELP), in which you get huge extensions after a huge earnings pop, are unusual, and no doubt catching many traders on the wrong side of the track....254 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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