Just found out I had UIS in one of my accounts yesterday and that it announced earnings 3 days ago! I know all about earnings being 50-50 at best, but it takes great discipline to keep track of them! Now the chart before the earning looked quite good, with prospect of breaking the 33.10, consolidating above the gap support, and its rival IBM is at all time high. But the bottom line is, it doesn’t matter when it comes to earning.
NTGR’s chart was similar, with prospect of breaking the horizontal resistance at 34 and has been consolidating right above the 200 day ma. It announced earnings last night and, contrary to UIS, the chart went flying, up as much as 28% intraday!
Two solar stocks also had opposite reactions: ELSR and SPWRA. Yesterday ESLR was down over 32% despite the price and volume momentum. It has been hot on stocktwits.com. All these momo players got their heads handed to them.
Even the pros would advise against holding through earnings. Straddles would profit from these earnings but options are not my cup of tea.