Earnings Release Seesaw
The Qs are testing Wednesday’s
key lows as we approach midday and
continue the earnings release seesaw that has been tossing the Qs and their
underlying equities around like a rag doll. Volume and pace have been lackluster
(OK, “pathetic”) so far on this options expiration Friday, and
intraday trades have been limited to a handful of scalp opportunities. In fact,
the most dramatic move of the morning was a quick surge higher upon DELL’s
upward earnings guidance which quickly subsided once short covering subsided and
the larger downtrend resumed. The longer-term bear vs. bull dilemma that I
mentioned in yesterday’s
column remains intact, and a hold of the current double bottom outlined
below will be critical if the immediate downtrends are to reverse.
Friday January 18,
2002Â 12:00 PM EDT
I mention in my
video that I don’t care much for trading the Qs in the midst of earnings
season, and this week has once again provided ample evidence of how the usual
CEO and accountant shell games can disrupt the continuity of more natural market
rhythms. This week has also provided additional evidence of why I enjoy focusing
on intraday trading, as some of the big boys have found themselves immediately
on the wrong side of heavy end-of-day positioning upon coming to work the next
day — most notably on the buy side of strong closes. Scaling back, waiting for
the dust to settle, and reminding yourself that there are 250 trading days in a
year is certainly worth consideration as we head into the long weekend.*
Good Trading and Have a Great Extended Weekend!
*Then there’s also the matter of a rather important football game in these parts
Saturday night. Current weather forecast is for temps in the 20s with snow
likely. We’re currently searching for the snowplow driver from years past.