With earnings season upon us, it remains to be seen if the buy-the-dip play from last earnings season will continue. Looking at COST from Friday, 10/6 they beat earnings, and immediately sold off reminiscent of many plays from last quarter. Too early to see how it will play out or call a pattern, but it’s certainly a data point to consider as the market works out it’s next move.
Reviewing some successful plays from last quarter, I’m reminded of SINA, which started showing up on my screens in late August. I added it to my watch-list around 100, and was prepared for the sell-off after earnings and added a starter position after the sell-off. It then proceeded to blow through my trade-to targets. And this happened over and over again last quarter – particularly with Chinese stocks.
Something to keep an eye out for as earnings get’s rolling.
