Follow-Ups on Some Earnings Trades
I can't say it started off as the greatest day with regard to the earnings trades, but it has gotten much better as the morning has progressed. First, Mattress Firm (MFRM) looked as though it would be a disaster. Fortunately, the trade setup did not have much risk unless Mattress Firm pushed toward or below $25. For a bit in the after-hours session, it started to feel like that could be possible today.
I was a buyer of shares in the after-hours session, getting hit on a bid just above $28 all the way down to $26.90 on staggered orders. Fortunately, that was well rewarded this morning, although I scaled out in the same fashion that I had scaled into the trades. I did scale out far too early, but I set levels and wasn't looking to be greedy. I did not feel the report was nearly as poor as the stock action indicated; however, the action was light after hours last night, and with a 40% short interest, it would not have taken much for a short to try to push the bulls' psychology to very low levels coming into the day....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.