Thursday, July 25, 2013

Never hold into earnings! Never hold into earnings! Never hold into earnings!

Never hold into earnings. Never hold into earnings. Never hold into earnings.

I wanted to put some thoughts out there today in the midst of $AAPLs earnings beat, $FB huge upside surprise and a few others that are screaming out of the gate after their announcements. One of the hardest thing I still struggle with is stepping aside through earnings. The glitz and glamour of potential huge returns draws me in every time. Only to have the curtain pulled away and then shot back down to earth.  It's tough to see these huge gains and not be part of it. $FB up over 20%, $BIDU over 16%, $TRIP over 14%... I am definitely a gambling man. I love Vegas, I can sit at a blackjack table for 15 hours. But this is a gamble that the house has the best odds. $AAPL suckered me in again as it did last quarter. Never again.

I am looking into a tattoo that screams, "Never hold into earnings!"

Moving on though, I still am keeping trades on via puts in $BBRY (rolled from last week) It still looks weak to me but is very stubborn. But the stubbornness that is keeping it from testing the $8.45 pivot is also keeping it from popping passed $9. I think until the company has a catalyst (a decent new product,) gravity will win out.

Also started for a quick trade via puts in $NFLX. The chart looks like it needs a rest. I added puts with a drop below the $248ish previous pivot/breakout. A test of the 50d sma is my target.

Not only has it broken previous breakout levels but it has done so on higher volume. Still, this is just a quick trade. Unless it keeps moving lower, I will cover above $248

Keeping an eye on $MNKD. Possible news in the fall and it is working on a decent wedge setup. Alerts for over $7.50

Happy Trading.

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