{"id":46164,"date":"2017-10-04T17:22:52","date_gmt":"2017-10-04T21:22:52","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=46164"},"modified":"2017-10-04T17:22:52","modified_gmt":"2017-10-04T21:22:52","slug":"the-earnings-fade","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-earnings-fade","title":{"rendered":"The Earnings Fade"},"content":{"rendered":"

Each morning before the market opens we review stocks that have fresh news catalysts. We call these stocks “In Play”. When a stock has what appears to be a positive catalyst and yet is trading lower in the pre-market we take notice. Sometimes a stock with a positive catalyst will be trading lower because it has recently run up prior to its earnings’ report. But occasionally the market will just get it “wrong” initially. It is a lot easier to push a stock higher or lower in the pre-market when there are very few participants and liquidity is minimal.<\/p>\n

This morning PEP reported solid earnings and guided up slightly. It had already sold off into earnings so we labeled it as a “good bounce candidate”.\u00a0\"\"<\/a><\/p>\n

I was happy to buy PEP any price below 107 and the closer to 106 the better. Confirmation that the trade was working would be a “hold” above 107. Here is how PEP traded this morning.<\/p>\n

\"\"<\/a><\/p>\n

Here is the discussion from our pre-market meeting.
\n