I'm still hanging on to my QQQ short into earnings. We had a nasty downturn last night post market. Alcoa, the first of the Dow components to report, reported a good quarter but said that they would not see the big jump in earnings (due to hyper-increased demand for aluminum) until Q2. This got the grumpy traders upset and they sold it off in the aftermarket. That will most definitely overhang the market today and we will probably go lower.
Good! I need to cram more dollars in, but it is important to note what is going on here. WHEN IS THE LAST TIME ANYONE WAS THIS CONCERNED WITH ALCOA!!?? I remember a time when Cisco would garner earnings attention, or perhaps Intel, but Alcoa? I think some folks want Alcoa to start swinging like a high beta tech name, and that just aint gonna happen folks. A 64 cent move in Alcoa is a big move for that stock. But what do I know? I own it a point and a half higher......
I believe earnings will ultimately post a great quarter. There will be more winners than losers, but make no mistake, you have to not only pick the winners, but do it at the right time due to the range bound nature of the market here. Right now I'm liking EMC for earnings. Guys like me have been buying this stock for weeks now and taking huge amounts of pain with no upside reward. If they post a great number, then I feel like the vacuum that has been created by the downside pressure will fill and we will go higher. I'm going to try to buy more under 13.
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