Earnings, They Know the Numbers – Not

Often we hear people say, “they” know the numbers because a stock or the market moved a certain way the day before the event.  It’s mostly not the case.   Even if that is indeed the case, there is no way to play it.  When a stock goes up before the earning, it could be one of two things if we want to attribute the move to be due to the people in the know: they run up the price to dump it because the numbers are bad, or they buy with both hands because they know the numbers are good.  It’s moot.

APKT was up 6% during the day, only to tank over 10% after hours.

INFN, on the other hand, was up 5% during the day and popped another 10% after hours.

GMCR was flat during the day, and jumped 24% after hours.

How about SFLY?  It rallied 6.5% during the day, only to dive 14% after hours, and finished the next session up 7.8% (that’s over 25% move from the after hours low!!!)  Who’d have thunk it?!

Earnings plays are casino plays however you slice it.


About fifty2weekhi

Profit for my kid's future.
This entry was posted in General Commentary, Wisdom on Trading and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s