Tuesday, September 25, 2007

What Is An Earnings Run?

We often get a chance to put dollars in our accounts by looking for "earnings runs". What are they and why do they work? Well, the bottom line is that the market still runs on fear and greed. Earnings season brings out both. The concept is really pretty simple. When earnings reporting season approaches, we get a lot of traders who get excited about what they "might" hear, so they start buying into the hope. If a stock hasn't come out to warn or preannounce any bad news, it gets really interesting as traders almost fall over themselves to get a piece of the action. So, just about 10 days before actual earnings start flooding the airwaves, we generally see stocks start inching higher. But what happens when they actually report? More times than not the stock gets a smac View the rest of this article


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