AMD
INTC
Hey, traders!
If you analyze the market, you probably know that the reporting season is going on.
Many traders are trying to "catch a wave of luck" this season, hoping to earn their share of profit on bad or good news.
Naturally, this is possible, because the market is very volatile during this period.
Inside the day, you can make a good profit.
But here's what you should consider:
1. A good report doesn't guarantee a price increase for this instrument yet.
Firstly, the report may not be good enough in the opinion of market participants and the growth may have been already laid before the report was issued. Insiders usually play the news out in advance.
2. Report may be strong, but the stock may fall as the company lowered its forecast.
The forecast is much more important than the fact that the company reported well about last quarter.
Market is always looking to the future. If a downside forecast is made, the price will go down.
3. Reporting of one company affects the share price of another company in the same sector.
And if there is bad reporting on one company - the leader of the sector - the share prices of other companies in this sector may go down.
But it doesn't always like that, for example, if the companies are competitors.
The opposite can happen: look at the Intel company. It presented a good report, but there is parallel news: "The Chip Giant divulged that its next generation of chips would be delayed and that it may seek third-party manufacturer to make them..."
This was enough for the Intel price to drop by -16.24%, but at the same time, AMD grew by the same +16.5%.
Such effects can hardly be predicted. But it is worth knowing about this factor.
So, dear friends, be careful with trading during the reporting season.
For serious knowledgeable traders, I can advise on some option strategies this time.
But this is already a training topic.
Now, as for AMD. As you understand, after such a merry growth, many speculative traders who bought the instrument in the channel 48 - 58 - will start selling their positions, fixing the profit.
Personally, at this moment I start watching this paper.
If the price does not go to the short zone, it will mean for me that this instrument continues to buy by a strong long player.
I will join it with my purchases in hope that it will provoke growth.
If the instrument behaves poorly, I will enter the short.
Good luck, everybody!