Earnings Season Underway with AA

10 Jan

As is tradition Alcoa (AA) kicks off earnings season today. This usually leads to a lot of whipsawing during the open and should be traded with caution. It does pose great for intraday traders and traders playing these news announcements. A full list of earnings announcements can be found here.

2 Responses to “Earnings Season Underway with AA”

  1. Nick January 12, 2011 at 7:05 pm #

    What is your opinion of the S&P and emini dow at this point in time? It seems to be in a rather tight range right now trading sideways making it difficult to trade. Do you think this will change with earning season?

    Thanks

    • Tim Racette January 12, 2011 at 7:26 pm #

      Earnings season always stirs up the pot, but sideways action often times results in a continued move in the same direction, therefore we moved up in Dec, paused here for the past week or so and would be expected to continue upwards. The week of MLKJr. holiday is when volume usually restores to the markets and this is the week that I will take notice. As for right now any rally that we have is on relatively lighter volume and thus, could get smacked next week. If the market want’s to move higher, I’m not going to fight it.

      Options are great in a time like this, low premiums and a level of uncertainty. Putting on a set of positions that results in delta neutral can position you for a move in either direction. relatively strong and relatively weak stocks are what we look at as compared to the S/P. FinViz.com is a great resource for this.

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