About a third of the S&P set to report earnings this week — what’s your execution plan?
July 26, 2010

For those of you who sent me comments thanking me for your fortune of trading McDonald’s after you did some DD after reading my last post — you’re welcome.

For those of you who have been frozen on the sidelines afraid to make a move and you read my last post about watching McDonald’s — I hope you watched closely, because that’s how this market has been trading.

By the time the street is buzzing about a name in this market, it’s almost too late — you have to be a step ahead of them.

Do your homework.

Know when your companies are set to report earnings.

Read every single thing on them leading up to earnings.

Size it up.

And if everything appears to be positive, make a calculated decision on how to execute your trade — before the street starts buzzing.

Leading up to last Thursday, everyone was buzzing about Amazon and Microsoft, but many of the traders already executed their trades before the actual earnings reports, so when these companies actually released their earnings — there were no grand moves in the market — the traders had already been in and out of those positions.

Meanwhile, McDonald’s had a stellar day — trading ahead of its earnings.

In this market, you better be moving with stealth-like precisions, knowing precisely what numbers you’re looking for — or you’re going to get slaughtered.

Now that you see how this market is moving, you’ll have a better idea how to trade this week, as about a third of the S&P is set to report their earnings.

Fasten those seatbelts and be prepared to act like a lion and pounce on your trades with lightning speed — and get the heck out before it’s too late.

But don’t you dare make a move if you haven’t done some solid DD on every single execution — as I can pretty much guarantee that the only thing that will get executed will be yourself.

Just remember the usual disclaimer: Don’t base any of your investment decisions on anything you read here. Do your own due diligence, or at least enough research to pick the right professional to do it for you.

The street will be buzzing about Bernanke, unemployment rates, Amazon, Microsoft and Starbucks — but my eyes are focused on McDonald’s
July 22, 2010

Let me pop in here this early Thursday morning before the opening bell to answer some of the questions I’ve seen people trying to post over the last couple of days.

To those of you wondering what the heck happened to in Wednesday’s market, let me make this short and sweet. The market was having a good rally, moving on good earnings reports from some good companies.

Then Congress once again started asking Bernanke for a weather report, and he told them exactly what they already knew, we already knew, and most people on the street already knew — the economy doesn’t look exactly rosy, and he doesn’t have high expectations for the unemployment rate improving anytime soon.

But the traders who are moving the markets these days, don’t like any sort of bad news at all — even if its news they already knew — and they dump many positions, causing the market to take a little nosedive.

Not a big deal.

If you’ve been watching or participating in this market at all — you should be used to this.

My guess is, the traders will sleep on it, wake up this Thursday morning, wait for the opening bell, listen to some analysts calls on this big earnings day and week with Amazon and Microsoft — and if the news is rosy about the Kindle, which I believe has been doing fairly well in the marketplace since they slashed the price in June, and Microsoft — my guess is the market will will have a nice day.

As for what’s at the very top of my watch list — the very same name that’s been on my list for a long time — McDonald’s.

If you’re someone who’s sitting on the sidelines trying to watch and figure out what’s going on in the market — just watch this baby over the next day or so, as it will give you a good gauge for how to play this overall market.

But everyone must heed my usual disclaimer: Don’t base any of your investment decisions on anything you read here — do your own due diligence — or at least enough research to pick the right professional to do it for you.