August 18, 2015
Cramer Remix: Wrong way to play a big market trend
In Cramer's experience he has seen that whenever the expectations get too high going into a company's quarter, the odds are that the stock will get slammed when the results are released.
In my experience, what is the most reliable way to know if expectations are too high going into a company's quarter? The stock gets slammed when the results are released. I therefore tend to agree with Cramer on this.
This theory has enormous implications and is therefore definitely worth exploring further.
If the stock trades mostly flat when the results are released, then the expectations were probably just about right. It's just an opinion though. I'd be curious to know if Cramer would agree.
And lastly, if the stock trades significantly higher when the results are released, then the expectations were probably way too low. Once again, it's just an opinion. I'm trying to make sense of this difficult concept as best I can.
Granted, I am not a financial expert with my own TV show. I don't have sound effects buttons I can push every time I think up something amusing to say. I don't have a degree in finance or economics. It's just a few things I have picked up on the street. Take it with a grain of salt. This is not investment advice.
Yay! The second No @#$% Sherlock Report has been successfully posted! I was beginning to think it was just a one hit wonder. Thanks Cramer! :)
Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
-
At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
12 hours ago
No comments:
Post a Comment