Good morning
Happy Sunday to you. Next week could be a defining moment for the markets that have been clearly in control by the bulls. We have a broad array of high profile companies reporting earnings and many of the charts for these companies are in areas that suggest the numbers need to support the valuations. Simply said meeting expectations may not be enough. If these stocks are to continue there tremendous moves higher they can't just simply meet expectations they need to crush expectations and provide stellar guidance that also exceeds expectations. Anything less and we will likely see some pullbacks. I am not saying that we are looking at the start of a bear market I am just saying that there are many stocks that are priced to perfection out there. If some of these companies miss expectations or guide below expectations then we will see a more significant pullback. Case in point take a look at what happened to AAOI last week after lowering expectations and guiding down.
Earnings season can be tricky and holding through these events can be risky. If you have profits heading into earnings taking some off and reducing your exposure and locking some profit is a wise approach in my opinion. You don't have to sell it all just reduce some exposure.
It is extremely important to make sure you have a plan for each and every trade or investment you take. That is what we teach at Alpha Wolf Trading we focus on knowing your risk reward and identifying your stops and your targets before you take the trade.
Regardless of your time frame or style of trader/investor you may be. If you are having a difficult time with trading and investing and you are tired of trying to follow others into their trades & experiencing poor results. Join the pack & Alpha Wolf Trading and learn to find, define and execute your own trading and investing plans.
Have a plan, know your risk reward and never chase.
Best of success
Email me @ Tim@alphawolftrading.com if you have any questions I am always happy to help others.
This weeks 5 in 5 stocks to watch for trading and investing
BOX AKS PRED PETX ATRO
