Trading Strategies: How to Prepare for This Earnings Season

Real Money contributor Stephen Guilfoyle weighs in on what he's watching this earnings season.
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Are you ready for the first earnings season of 2019?

In this week's episode of TheStreet's new podcast series Trading Strategies, Real Money contributor, Stephen 'Sarge' Guilfoyle, joined TheStreet's Martin Baccardax and Katherine Ross to discuss China, the Fed and, of course, what the former New York Stock Exchange trader is looking at as earnings season comes barreling at Wall Street. 

"We just came off of the third quarter, which was probably the most robust reporting season we've seen maybe ever, at least that I remember. And guess what? It didn't help the market one bit. Now we're going into the fourth quarter reporting season," Guilfoyle said. "We're only looking for  earnings growth of 12 point something percent and looking for revenue growth of six points up eight percent, and, for the full year, up maybe five percent on revenue growth."

Last week, Apple cut its revenue forecast, which set the markets spiraling. Guilfoyle expects that the Apple scenario might not be the final one that investors see when companies report on their quarter. 

"[The quarterly] numbers are probably going to come down because as we've seen--the Nvidias (NVDA) - Get Report , the Microns (MU) - Get Report , the Apples (AAPL) - Get Report are all lowering their expectations for revenue. So, I think those numbers are probably artificially high. What I've done with my own portfolio is I have really narrowed my scope. I'm still long some of these tech names, but to much lesser degrees than I was when when the downfall started," Guilfoyle told TheStreet.

Notsure how to position yourself this earnings season? Here's what Guilfoyle's plan is. 

"I have become much more defensive, I have sought out dividend payers. Like I said, I've been adding to the oils, but that's only because the oils will provide you--most of them at least the big names--don't go into the scary names because they're facing debt problems," said Guilfoyle. "But, if you stay with the big names, they're going to pay you a nice dividend and you still have exposure if growth doesn't go away."

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