It's basically for those who keep a close eye on Pre n AH, I found it useful to make a list of stocks that appeared on Pre and Ah because of their positive earnings. Not only, such stocks, run well that day there are strong chances that they might start running again within a period of few days/ weeks. Some may gap up tht day, go down the next and start moving up again.
Forexample
CPWR appeared on Ah -MAy/15/07
HSOA -Ah on May/9/07
There were many includin AIRM,FWLT,NDN(yest)andVDSI (today) to name a few. It may not always happen this way but FDA approval for Pharma/Bio, earnings along with pre /ah can be the rule of thumb.
3 comments:
absolutely! FDA + Biotech + Pre/AH = $$PROFIT$$$ but it's fast and don't get greedy...set your mental stops on both sides and stick to your rules. We all have done the 6% a-week for a year spread sheet and using this approach is one way to get an easy 6%
AH + Earnings = A Booyah!!!
That's what makes Biotechs more risky. It all fine and dandy if you daytrade them but those overnights holds can take you too the cleaner's in a hurry.
I agree, stops work fine during the day but "large gap down" at the open can take you some time to recover the wounds.
Hi Anony!!!
lol.....You are so very right, actually I forgot to add tht the strategy can be helpful to scalper/daytraders.Swing/longterm n Scalping/intraday are world apart, you cannot generalize the rules.
For long term You need to look into many more things (technical/fundamental analysis,co's financials/industry etc.) than just tht. Thnx for stoppin by.
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