Yesterday, Thursday, when the market took a brief respite, my calculations told me that it would go up today. It is now officially earnings season. It's a new period---what I call a green-light period. Now, the news could be bad, but there are so many American companies making so much money. It looks good, but remember it's not always the actual numbers, but the commentary about the numbers.
The adage is powerful that says: "A stock price today is based on the anticipation of future earnings." So, what some companies do is say things like: "We're doing well. We beat our estimates, but the next quarter (year) looks tough. Competition is up and expansion uncertain." Focus on the commentary.
Now, for next week? I think up, but I really don't have a feel yet. It will be up based on the earnings season, but any bad news, even international, could drive it down.
I'll get some closing prices later and comment on covered call possibilities at that time. The question is to do or not to do October Strike prices, or move out to November. My rule of thumb is to take what is on the table before you. November will be there after next Friday.
Happy Investing.
Wade
No comments:
Post a Comment