This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Take Advantage of Earnings Volatility

NEW YORK ( TheStreet) -- Buy weakness to a value level or key moving average, or sell strength to a risky level or key moving average. This allows investors and traders to capture volatility both before and after earnings releases. All you need to do is enter GTC Limit Orders to buy weakness at a key level or to sell strength to a key level. Capturing volatility is the name of the game during every earnings season.

The majority of companies have been missing revenue estimates when reporting their third quarter results. As a result the number of stocks that are rolling into a negative weekly chart profile has been increasing. As stocks succumb to "QE fatigue" so do the stock's sector and the major equity averages.

On Oct. 29, while the stock market was closed because of the approach of Hurricane Sandy, I profiled eight stocks in This Week's Key Earnings Reports. Today I review how seven of these stocks performed versus their key levels. Only one of these stocks did not miss on the bottom line.

On Oct. 30, while the stock market was closed because of the wrath of super-storm Sandy, I wrote Trading Earnings Volatility, and today I provide updated profiles for six of these names.

Norfolk Southern (NSC) ($60.99): Set a new 2012 low at $60.71 on Monday. Consider buying weakness to the 200-week simple moving average at $59.78 with weekly and semiannual value levels at $58.78 and $58.29. My monthly risky level is $66.41.

Boeing (BA) ($70.41): Consider a buy-and-trade strategy on weakness to my monthly value level at $69.69.

Procter & Gamble (PG) ($68.67): The weekly chart profile shifts to negative on a close this week below the five-week modified moving average at $68.61. My quarterly pivot is $70.38.

Under Armour (UA) ($53.00): Remains above its 200-day SMA at $50.26 but below its five-week MMA at $54.65.

Amazon.com (AMZN) ($234.33): The influence from weekly and semiannual pivots at $233.53 and $236.23 should keep the stock in a tradable range between $223.00 and $238.70.

Apple (AAPL) ($584.62): Has been below its 200-day SMA at $592.91 for the past two days. In mid-June 2011 Apple spent just six days below this key moving average. This week's pivot has a high probability of being tested this week.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,296.90 +30.91 0.18%
S&P 500 2,010.39 -0.97 -0.05%
NASDAQ 4,575.8820 -17.5430 -0.38%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs