“You can’t grow long-term if you can’t eat short-term. Anybody can manage short. Anybody can manage long. Balancing those two things is what management is.”
Yesterday was finished the big earnings:
Amazon. Alphabet (Google). Meta (Facebook). Apple. Microsoft.
All part of the Magnificent 7, the big companies that move the market.
Mostly positive, with some big movement from Amazon. Which also falls in line with what we’ve been seeing from the companies earnings this quarter.
I think of trading the earnings results as a coin flip bet.
But because I trade a system that has around a 98% win rate ... why on earth would I take that bet?
Sure, 50% of the time I could be right and make some pretty good profits. But the other half of the time I’d be wrong and have to scramble to save my trade (or book a nasty loss).
Lots of action in earnings trade ideas, but, for me, not helpful.
I’d rather take the boring trades that keep working as long as I stay patient.
Week in, week out.
Collecting premium and seeing my account rise by (now) about 2% per week.
That’s better than a coin flip, in my opinion.
Today’s Macro Headlines (Source: Yahoo Finance)
Yahoo Finance
Why it matters …
From the article …
“Amazon stock soared almost 13% in premarket trading after its third quarter results easily topped analysts' forecasts. In particular, its cloud division, Amazon Web Services, posted a 20% jump in revenue, signaling renewed strength in enterprise demand. Apple's (AAPL) stronger-than-expected results helped lift its shares, as did its upbeat guidance for the all-important holiday quarter.”
Strong earnings will lift all ships. The good earnings reports just keep coming in. There was good news from the President’s trip. If we can get the government open next week, we may see a green November.
Index Snapshot
See the Legend in the footer below
Comments: We are looking at a green start for the day. It’s Halloween, which financially means the last trading day of the month, so let the “wonkiness” prevail! Ha
I expect a lot of my positions to expire worthless today which is great with me. If not, take a note from the Rawhide theme of the sixties and keep “Rollin, rollin, rollin…” “Yes, I will take two lumps of premium, please!” (I love this system!)
Check your positions like a normal Friday and be prepared to make adjustments based on your preferences.
Stock Spotlight (Premium subscribers only)
A Bravo scan trade idea for around 1.94% return on risk into next Friday’s expiration.
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