Thursday, July 22, 2010

Why I do not hold through earnings!

Take a look at the charts of these stocks that I bought two days ago but sold yesterday at the open because earnings announcement were due:

Notice that where as FFIV gapped up big and is now up over 13%, NFLX gapped down and is now down over 14%! Reactions to earnings announcements are unpredicatable! I generally do not hold through earnings announcements unless I have a cushion going into it.

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