Market Detective
One of the things I love about the strategy of News Reversals, is that even
if the technical criteria are not met, the stocks in the news are still often
good candidates for an intraday player.
Potential News Reversals for September 25, 2002
| AZO |
Autozone is reporting Q4 (August) earnings of $1.73 per share, $0.32 better than the Multex consensus of $1.41. Revenues for the company rose 12.4% year-to-year to $1.84 billion vs. the $1.73 billion consensus.
Watch for a gap up opening, and look to go short
 |
 |
76.96 | – |
(
AZO |
Quote |
Chart |
News |
PowerRating) gaps higher as expected, but not above Tuesday’s high, so the News
Reversal criteria are not met. However, that does not mean that AZO is still not
worthy of stalking for an intraday setup.
While the 9:38 alert does not come in to play in AZO, the
wedging off the intraday low and subsequent move lower turn into a good trade,
particularly since the drop coincided with the drop in the S&P’s
(
$SPX.X |
Quote |
Chart |
News |
PowerRating).
By getting a stock with price action stretched to an extreme due
to positive news, and waiting for a contra move that went in tandem with the
S&Ps, you would still be able to take advantage of the News Reversal strategy,
although the technical criteria were no longer valid. Get in the habit of
reading the market, putting the pieces together, or whatever term you want to
give it. When you do, things will not be a mystery much longer.
Until tomorrow,