A long-awaited resolution to the debt crisis in Europe is taking the breath out of the shorts. Massive amounts of covering have helped lift stocks. Might we actually finish the year with strong positive gains?
It is entirely possible. Economic data — including Friday’s jobs report — are suggesting that things are not as bad as they may seem. Holiday shopping is humming along at a record pace. There is plenty of good cheer to lift stocks higher.
Or we might not. Isn’t that always the case with stocks? They may go higher or they may go lower. One never does know.
After the series of shocks to the system over the last few years, investors must be facing something similar to post traumatic stress disorder. Who can blame them?
I don’t think there are many, but the bravest or the craziest that trust this market. As such, I’ve recommended investors use a portion of their portfolio for trading stocks based on earnings reports. At the moment in time a company updates the market with progress of its business, the focus turns from macroeconomic data to fundamentals.
Read the tea leaves correctly in advance of an earnings report and trading profits can be had — and big ones too. It is not unusual for a stock to move by 5% or more in the immediate aftermath of an earnings report.
Here are five stocks reporting results this week that may see big moves after they report: