Written by All About Trends
Earnings season approaches and now is the time to seek advantageous entry positions in anticipation of the market moving announcements to come. In a market that’s near support and in a confirmed uptrend, it’s all about buying calls in stocks that are also at support. We’ve done that by buying the November calls of NUAN and VELT when they hit support and now will hold through their earnings reports in November.
What we see becomes very evident when you look at the charts.
Coming up very soon are reports by two of the financial stocks we presented in the All About Trends mid-day update last Wednesday — C and WFC. Their earnings reports are right around the corner AND more importantly their charts look really good — both are in confirmed uptrends and above the 50-day. We’ll want to do calls in C and WFC should they tag support again in the next day or so.
The same goes for the others on our watch list. We want to buy calls should the stocks hit support that will carry us into earnings where they have potential to give us a nice pop. This will remain our game plan as long as the Yellow Brick Road remains intact.
So that said, we’d welcome a few more days of consolidation in the indexes. While it may bring more temporary in-flight turbulence for our current positions, it will allow us to initiate positions in stocks on our watch list and put us in position to benefit nicely from earnings season.
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