VMW was beaten up big time. While it was difficult to predict earnings there was a high probability trend trade upwards before earnings. This did occur. The move was from 52 to 58 about a week before earnings.
This was a low risk 12% pop.
I will look for this next time and look for other stocks still to report that may fall into this category:
Beaten up with solid enough fundamentals that an upward move is highly likely before earnings. Define the stops before the trade...
Also CME, on my best ten stocks for the long haul list, got thrashed today. I expected this might happen as I took a look a few days ago at the open interest and it was down big time. The de-leveraging of hedge funds will be made up by sovereign funds new buying interest? Hmmm?
Still this is a great company. I will have to listen to the CC.
Also ARAY is getting cheap enough to follow. They got nailed by the credit mess but are they now cheap... perhaps...? the CC will tell all. I will be watching this one closely when they report 5:00 on the 29th. This company has tremendous potential but lots of risk right now as well in my humble opinion...
This blog is for informational purposes only. It does not give investment advice.
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