Trading Earnings

As part of a new earnings season series Birinyi Associates will publish analysis of all the important S&P 500 stocks' earnings estimates and how they trade after reporting. Johnson and Johnson reports tomorrow morning, how does it typically trade after a report?  Do listed companies that beat before the open and gap up 5% continue higher or sell off during the trading day?  Instead of spending hours modeling EPS estimates, Birinyi Associates listens to the market and provides trading strategies rooted in historical fact.

Intel reports tomorrow after the close, traders should use the same strategy regardless of the report (beat or miss). 

These stocks typically gap down 5% or more on an earnings miss and trade lower throughout the day.  Subscribe to Birinyi's mini-institutional service to receive daily and weekly updates on upcoming earnings and how to prepare your portfolio ahead of time.

Comments

[Account Deleted]

Stock prices are going to go down further in 2009. In my opinion, one should stay away from stocks for the time being as long as the recession lasts. However, if you are thinking on investing long term with a time horizon of 5-10 years, this may be the best time to buy stocks.

Do you know that forex trading is being called the Recession Proof Business of 21st Century. It is being said that forex trading is going to make many millionaires in this decade. Read my blog for more on forex trading strategies that can make a fortune:

http://forex-or-stocks.blogspot.com

[Mukundan]

This article is very informative.I have started a new blog. Please visit it and give ur feedback.I have lots of contents on Economy, Company news, Stock recommendations, Warren Buffett and much more. Make a visit to marketoutbox

[regionmap]

Blogs are good for every one where we get lots of information for any topics nice job keep it up !!!
One of the reasons I enjoy just spending time reading other blogs is I learn something new , thanks for helping me gain a better understanding

[ipspcc]

Tradionally a great analytic parameter for the world trading would be to follow credicard Brands on the stocks, as their gains come from the flux of money from accounts in return of good and services. now days the Market still are very speculative so even those brands do not reflect the true impact of the recession.

[Dissertation Help]

Its very good and valuable post about trading earnings, thanks for sharing, Regards

[Share Tips]

Thank you for you free service to others .
Do you think you are the only one that likes to make money or learn something? I had to watch Don H videos, no pun intended, I like both of ur points. But if you don't put out a video where do I expand my trading knowledge from? .They finally waited you out. Yep they will run dryship to the freak'in moon and beyond ! First to the Moon then Don will short it and at that point it where no man has gone before warp 11.

[Stock Tips Intraday]

Trading earnings for the quarter of $0.44 per share. Net sales grew 38 percent to $9.86 billion. The company projected second-quarter operating income of $95-$245 million.
The stock gapped open higher, but immediately began to lose ground. Shares bounced off their lows of the day during the 2 o'clock hour and ended off those levels.

[jeremy]

I like reading this post.

[free trading course]

I agree, this article has great information about today trading earnings. Knowing what is happening on stock market trading is necessary today.

[eztrader reviews]

There are dozens of trading strategies - some work better than others, but almost all of them work at some level. It all depends on your own skill level and your risk aversion. Technical trading is probably the best way to start because it introduces you to the sheets. To learn to read basic graphic patterns is an essential skill, and the sooner you get under your belt as soon as you start to make money as a trader.