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Earnings Season Favors the Bulls
by John Hopkins,
President and Co-founder, EarningsBeats.com
Recent headlines have focused on tax reform, health care reform, partisan bickering, the president's first 100 days. But in the background many companies have been coming up big when reporting earnings which is why the market has been so strong of late.
While the bears have been hoping...
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Earnings Take Center Stage
by John Hopkins,
President and Co-founder, EarningsBeats.com
It's that time of the year, a time when all attention is turned to the bottom line of corporate America. It happens every quarter and it always has a major impact on the direction of the market. And the bottom line almost always trumps everything else.
Of course...
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Trust Your Good Work
by John Hopkins,
President and Co-founder, EarningsBeats.com
If you trade stocks you're going to run into situations where you question whether or not you are making good decisions. This could include identifying entry levels and setting price targets and stop losses. It could also include pulling the trigger on a trade, taking a loss or...
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Reward to Risk Calculation a Must
by John Hopkins,
President and Co-founder, EarningsBeats.com
As part of our service at EarningsBeats.com we send trade alerts to our members on stocks that beat earnings expectations. But before we notify members of any trade candidates we look closely at the "Reward to Risk' ratio as we want to make sure it is favorable...
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Patience in an Overbought Market
by John Hopkins,
President and Co-founder, EarningsBeats.com
The rise in the major indexes since the election has been stunning. The S&P alone is up over 15% in just over 3 months. That would be a terrific year by any measure. The Dow was up 18% since the election at its all time high on Wednesday,...
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Trading Stocks in a Stretched Market
by John Hopkins,
President and Co-founder, EarningsBeats.com
I made my case to EarningsBeats members this past Wednesday just before we started to see a bit of selling. Here are the highlights:
1-The VIX is up by almost 9% today as it tests its 50 day moving average from the downside even though the market is higher. This...
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No Chasing Allowed
by John Hopkins,
President and Co-founder, EarningsBeats.com
At EarningsBeats we are steadfast in avoiding being involved in stocks into a company's earning's report because one can never tell how the market will respond to a company's numbers. Case in point is Amazon who reported their numbers last week.
Just look at...
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A Sure Recipe for Success - or Not!
by John Hopkins,
President and Co-founder, EarningsBeats.com
Earnings Season is now in high gear with thousands of companies getting ready to report their numbers over the next several weeks. Whenever earnings season comes around there are clear winners and clear losers with the sole evidence of success or failure being the performance of a stock. For example,...
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Guess What? "Official" Earnings Season is About to Begin
by John Hopkins,
President and Co-founder, EarningsBeats.com
No one can argue with the fact that the market has been fascinating to watch since the election with all of the major indexes substantially higher since the most recent bottom on November 4. There's been a few minor pullbacks along the way, but not many as traders...
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Taking Advantage of Good Luck
by John Hopkins,
President and Co-founder, EarningsBeats.com
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When Market is Stretched Patience is Required
by John Hopkins,
President and Co-founder, EarningsBeats.com
The market has been in non-stop higher mode ever since the election. The NASDAQ is up over 6%. The Dow rose 1000 points in four trading days. The small cap Russell 2000 rose over 13%. At the same time, bond yields have soared with the ten year US Treasury Note...
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Examining Market Response to Earnings Reports
by John Hopkins,
President and Co-founder, EarningsBeats.com
When the market is under fire like it has been for the past few weeks it becomes harder to trade successfully. This is particularly true if your focus is on the long side.
One way we've tried to combat a difficult trading environment at EarningsBeats is to focus...
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Holding Stocks into Earnings can be Costly
by John Hopkins,
President and Co-founder, EarningsBeats.com
We're now in the thick of Q3 earnings season when thousands of companies will report their numbers over the next several weeks. Earning season kicked off when Alcoa reported its numbers early last week and served as the poster child of why it's a crap shoot...
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Tis the Season - Earnings Season
by John Hopkins,
President and Co-founder, EarningsBeats.com
The third quarter has come to an end. It ended on a high note with the S&P gaining 3.3% from the June 30 close to Friday's close. Interestingly, the S&P got to 2168 two weeks into the third quarter which is exactly where...
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Sitting on the Edge
by John Hopkins,
President and Co-founder, EarningsBeats.com
September has a reputation of being a difficult month for traders. So far it is living up to its reputation.
The S&P started out the month pretty much like it had the prior many weeks; going nowhere. And on September 8 the S&P remained within easy...
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Finding Trading Opportunities in a Flat Market
by John Hopkins,
President and Co-founder, EarningsBeats.com
The market has been in consolidation mode for over six weeks now. The S&P closed at 2173 on July 20. It closed at 2179 on Friday. During that period of time any pullbacks have been shallow and short-lived with the S&P topping twice at 2193 and...
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With Earnings Season Over, What's Next?
by John Hopkins,
President and Co-founder, EarningsBeats.com
The latest earnings season has come and gone. Now what?
It's a good question, especially with the market in stall mode, with the S&P barely budging in over a month. This stagnation comes after investors seemed to have applauded the majority of earnings reports telling me...
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Earnings Power Market Higher
by John Hopkins,
President and Co-founder, EarningsBeats.com
The market has seen both the Dow and S&P hit record highs recently and now the NASDAQ wants to join the party. In fact the NASDAQ got to within just a few points of its all time high Friday, fueled by a very positive response to earnings in...
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Earnings Season Shifts into High Gear
by John Hopkins,
President and Co-founder, EarningsBeats.com
The "official" start to earnings season began when Alcoa reported its numbers after the bell last Monday. The market liked what it saw and heard with AA up close to 10% by the time the week ended. We also saw some major banks report their numbers with mixed...
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Bizarre to the Max
by John Hopkins,
President and Co-founder, EarningsBeats.com
Exactly how bizarre has the market action been over the last six trading days? Let me count the ways.
First, the British voted to leave the European Union which put the market in a tailspin with the S&P losing almost 6% in just two days. But by Friday&...
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Can Earnings Save the Market?
by John Hopkins,
President and Co-founder, EarningsBeats.com
Last week was rough on stocks as fear engulfed the market. All of the major indexes remain below key technical levels with the NASDAQ in particular very weak. And the fear was evident as the VIX rose sharply, hitting levels not seen since February of this year when the market...
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When Bad News is...Bad News
by John Hopkins,
President and Co-founder, EarningsBeats.com
The stock market can be quite mystifying. Depending on the mood of the market, good news can be interpreted as bad news, bad news can be seen as good news and every once in a while good news and bad news are seen just as described. It's one...
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Trading Tune Up Part Two
by John Hopkins,
President and Co-founder, EarningsBeats.com
In my last ChartWatchers article I pointed to the importance of taking a time out now and then to analyze trading habits. I referred to it as a "Trading Tune Up".
The article served as a reminder to me that you need to be on your toes at...
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Trading Tune Up - Lessons Learned
by John Hopkins,
President and Co-founder, EarningsBeats.com
If you've been trading for a decent period of time you know how quickly things can turn against you. Sometimes with no warning, all of the good work you've done seems to disappear and before you know it, profits quickly disappear as well.
As a trader...
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Earnings Season off and Running
by John Hopkins,
President and Co-founder, EarningsBeats.com
Alcoa reported its numbers after the bell last Monday which served as the kick off for first quarter earnings season. This was followed by a few big banks and then next week we'll get hundreds of more companies reporting their numbers.
Earnings season is important because when everything...
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Another Earnings Season Ready to Kick Off
by John Hopkins,
President and Co-founder, EarningsBeats.com
The first quarter has come and gone and now we are about to embark upon another earnings season that will officially kick off when Alcoa reports its numbers after the bell on Monday, April 11. Alcoa rarely sets the tone for earnings season but when they do report it'...
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A Set up for Shorts?
by John Hopkins,
President and Co-founder, EarningsBeats.com
The market has been pretty much straight up since the February 11 bottom of 1810. Since that day the S&P has climbed 13%. That's a very impressive move by any measurement. In fact, I would argue that it has been too much too quick.
Look at...
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It's as Easy to Get Burned Up as it is Down
by John Hopkins,
President and Co-founder, EarningsBeats.com
If the market this year has taught us one thing it's that it's as easy losing money when the market is going up as when it is going down. Consider this.
After the first trading day of the year was over, the S&P closed...
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Profit from Earnings Misses
by John Hopkins,
President and Co-founder, EarningsBeats.com
Our primary focus for a long time at EarningsBeats.com has been on those companies that beat earnings expectations and have strong charts. The reason being that companies with strong numbers and strong charts provide superior reward to risk trading opportunities. But we've learned lately that companies that...
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In Rocky Times Earnings REALLY Matter
by John Hopkins,
President and Co-founder, EarningsBeats.com
In the best of times companies see their stock prices rewarded or punished based on earnings results. Even when a company misses its earnings per share or revenue forecasts by just a small amount it can have a meaningful, negative impact on its stock price. But when the market is...
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Will Earnings Matter?
by John Hopkins,
President and Co-founder, EarningsBeats.com
Earning's season will kick into high gear this week and trader's are wondering how much they will matter after the market slaughter already experienced this year. Since this is the worst start to a year for stocks it's a legitimate question.
Let's...
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Preparing for Potential Shifts
by John Hopkins,
President and Co-founder, EarningsBeats.com
The S&P ended 2015 down slightly from the close in 2014. But to many traders, it sure felt like a downer of a year.
At EarningsBeats.com we combine strong fundamentals with strong technicals to try to find the best reward to risk trading candidates for our members,...
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Trading in a Sideways Market
by John Hopkins,
President and Co-founder, EarningsBeats.com
On 12-3-14 the S&P closed at 2074. On 12-3-15 (Friday) the S&P closed at 2091. That's about as flat as you can get over a 12 month period and it helps explain why many traders have had a difficult time scoring big gains over...
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Strong Earnings = Strong Performance
by John Hopkins,
President and Co-founder, EarningsBeats.com
At EarningsBeats.com we focus squarely on stocks that beat earnings expectations and also have strong charts. We do this as we have found that companies who report strong numbers get a lot of attention which makes sense given the single most important attribute investors look for in a company...
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Another Painful Reminder - Hold Stocks into Earnings at Your own Peril
by John Hopkins,
President and Co-founder, EarningsBeats.com
Earnings season has been in high gear the past few weeks with thousands of companies reporting their numbers. So far the results have been mixed but maybe better than most expected with the S&P now back to within striking range of its all time high.
One of the...
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When it Comes to Earnings, Patience is Required
by John Hopkins,
President and Co-founder, EarningsBeats.com
The earnings season is in high gear now with some very visible companies already reporting their numbers and thousands more about to report over the course of the next several weeks. Already we've seen example of stocks that have performed well after reporting and others that have taken...
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Now that the Fed is out of the way, let Earning's Season begin!
by John Hopkins,
President and Co-founder, EarningsBeats.com
The much weaker than expected jobs report this past Friday put a kibosh on any intention the Fed might have had to raise interest rates during the month of October. In fact, barring a major improvement in the economic outlook, it's doubtful the Fed will be raising rates...
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Strong Earnings Matter in Volatile Market
by John Hopkins,
President and Co-founder, EarningsBeats.com
To say the past three weeks have been wild would be a major understatement.
For example, the S&P lost 11% of its value in just 4 trading days ending in the most recent low of 1867 on August 24. Then it gained over 8% from that August 24...
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It's True...The Only Thing We Have to Fear is Fear Itself
by John Hopkins,
President and Co-founder, EarningsBeats.com
We've all heard that famous quote from Franklin D. Roosevelt in his first inaugural address. It's a saying that has had staying power for over 80 years. And it's something that rings true today in the current and volatile market environment.
It starts with...
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How to Avoid Getting Slaughtered
by John Hopkins,
President and Co-founder, EarningsBeats.com
There are differing opinions on whether or not it makes sense to hold stocks into earnings reports. One camp argues that you stand to make a big score if a company beats its numbers. Another camp - the one I'm in - says it's way too...
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