On my blog I have tried to communicate my insights into the stockmarket. I have written about the FANG and semiconductor stocks. This time around I will elaborate around a topic I have brought up before, the earnings season.
In How to do – Profit Seasons I gave you a framework to do good trades in traditional earnings seasons. Today I will take this further and make this into an earnings season perspective to stocks.
What I have explained before, stocks tend to start running all from the quarter’s start. This probably cause of high earnings expectations. This run something to make use of. I have showed you on several occations this been the case for the giants FANG, Facebook, Amazon, Netflix and Alphabet.
What do I mean with an earnings season perspective to stocks. Why not divide the year into four earnings season quarters. Add our insights from How to do – Profit Seasons and you get a full year framework to the stockmarket.
Here the best performing S&P500 Stock 2018 Netflix. Just look at the last two month performance. You can see the run from the quarter’s start. The run ends with a selloff post earnings. The stock consolidates and the run resumes. Perhaps cause of analyst upgrades post earnings
I will propose the two month run of Netflix to be a traditional earnings season pattern. Or one of several outcomes in an earnings season. Here the investors have expected good earnings from the quarter’s start. The stock came with killer earnings and got analyst upgrades post earnings.
Why not make use of this insight. If you put four charts from different quarters besides another you get my earnings season perspective to stocks. The pattern of Netflix quarter two one of the possible outcomes of an earnings season quarter.
This to elaborate further on earnings seasons and make frameworks to make use of in the invesment setting.