Reversal Of Fortune
News Reversals
are a great strategy to trade for two reasons. First, many times you
are trading on the same side with the specialists and market-makers, as they
will gap the stock on news and then run it up or down, away from the gap.
Secondly, the stock is telling you something if it does not go up on good news,
or sell off on bad news.
09:32:27
Intraday Setup Alert
Emmis Communications (EMMS)
is gapping higher after beating the consensus estimates by a penny. The gap
to the upside is not large, but is above Wednesday’s highs. EMMS could be
staging a news reversal if it can trade back through the prior high. EMMS is up
0.70 at 20.81.
This morning, right after the open,
EMMS gaps higher after beating the earnings estimates. After a small gap over
Wednesday’s high, the stock promptly reverses back to the downside.
The stock reverses back
for a nearly 1 1/2 point profit. If you are going to trade news, make it work
for you. Incorporate news reversals into your daytrading strategies. In market
periods such as now, when many companies are reporting earnings news, you will
uncover ample opportunities every day.
Until tomorrow,