Very quiet session today, but notable in that modest good news on China trade did not simulate the m...
Two Stocks to Prove Earnings Season Earned Its Reputation
02/08/2016 7:00 am EST
Ryan Mallory, of SharePlanner.com, takes a technical look at a pair of household names that were both hit hard following an earnings report, warns against buying on the dips, and outlines why he does not even hold stocks through earnings.
Folks—do not buy these dips! I repeat....Do. Not. Buy. These. Dips!
Earnings season has a reputation for being generous to some and absolutely brutal towards others, but it has been a long, long time since I saw two household names like Linkedin (LNKD) and Tableau Software (DATA) get taken out to the woodshed and slaughtered mercilessly.
Also, this is why I do not play earnings. I do not even hold stocks through earnings, because one slip—in a play like these two stocks—and your year is ruined. You don't recover from these kinds of gaffes. And let’s face it, after watching Facebook (FB) rip dramatically higher following their earnings report, it would have been easy to assume that LNKD would do the same.
But guess what? It didn't and those who gambled on LNKD were paying for it dearly Friday.
By Ryan Mallory, Founder, SharePlanner.com
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