ZoharCho

Stock Market Logic Series #6

Education
NASDAQ:TSLA   Tesla
Use earnings reports to your advantage.

As I discussed in previous ideas, the big money at any given time will be entering the market or getting out of the market. Never both.

When the earnings report is good, and the stock falls down => big money used it as a good advertisement to get out.

When the earnings report is bad, and the stock goes up => big money used it as a bad advertisement to scare other people to sell him their shares, thus he gets it.

This is the logic, and this is what you would have done if you had a lot of shares to buy and sell.
Trading is a business and as such it has the same functions as regular business.

The beautiful thing about the earning of the BIG CAP stocks, is that they give you a very high probability of direction to the market indexes. This is a situation where you "know" the market is going to move a certain way. Most of the stocks will follow the index direction.

This gives you a very very good day trade opportunity.

TSLA is a big cap, so any move of her, will directly effect the indexes.
This is why it is important to be aware of the BIG CAP earnings reports.

If you monitor those earnings you will see that you can gauge with very good accuracy and confidence what the market will do on a specific day. And milk the market using a day trade technique.

I attach to you how the earnings report of TSLA which created a gap down.
Pulled all the other stocks down also.
This is not a coincidence...

Your thought process is:
- earnings report of BIG cap is out
- This will pull the market to certain direction and bias
- I "know" the bias with confidence
- Odds are in my favor this day :)
- Day trade

See the strong DOWN bias of all the stocks...


Moral of the story: You should be AWARE to the BIG CAP earnings report. It makes or breaks your day...

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