This Monday I had the opportunity to appear again on the podcast “How To Trade Stocks and Options” by 10minutestocktrader.com. This time I talked all about this earnings season — the “run into earnings” season, what to expect, how I normally play earnings, and what I’m looking at trade-wise.
You can check out my segment below titled “Earnings Expectations and Trade Ideas”:
As for trades during earnings season, what I try and look for is the 8 21 Moving Average Cross (that’s where both these lines intersect, and naturally, crossover each other). This cross signifies that the shift has become more sustained. When that happens, that’s when you have price coming back up and closing above the averages. This occurred this month, and that’s why I determined the rally was more sustained than previous rallies at the end of 2018. As a result, I was more confident in looking to buy in this market.
I think this sustained buying will continue well into earnings season, and I’m eager to see how it all shakes out.