I am surprised at today's drop in google price in mid day because it seems there is a mistake in the earnings release timing. Google should release after market closes. Instead the release is now in mid day 12am Singapore time. CNBC say it is unusual and someone accidentally release it.
But seriously, i am not surprised about the drop. If you saw my article, I warn everybody to get out of tech sector stocks last week before google earnings as I expect a big disappointment! Actually I expect this stock might drop $100 though I did not short it. Reason is earnings release is so risky. I have been through the experience of guessing it right 4/5 times. But the one time that I guess wrong is enough to wipe off all my profits.
One of my principle in short term trading is not to hold stocks through earnings day. This is because I do not want the heart attack of waking up to know I have lost thousands of dollars overnight.
But last week, I am perhaps the only few and first people to warn you to get out of tech stocks on thursday because I know the risk of a google breakdown.
Check out our article to warn you last week:
this is the most valuable lesson that I have learnt in my 10 years of trading in US market, whenever a company ran up too much before its earnings, more likely than not, the company will GAP DOWN on earnings day.
The amazing thing that I found out is, Wallstreet always think otherwise. Today they are dumbfounded by the drop.
Believe me, those analysts' or commendators or press and media do not know anything about trading! I have lost enough money trusting them that I know. They have been saying BUY BUY BUY before its release. Never trust MEDIA and ANALYSTS. They never trade and know nothing about EXPECTATION. It will happen again in future to some other stocks... I would rather you trust our blog than those professionals who appear in media or TV.
BUT now, do you know what is the good news?
Now that tech may have reported its worst earnings with google , we think it may be time to be bullish for some tech stocks... haha. I am going to see if I can pick up some good potential tech stocks that has done well in its earnings.
One good stock is EBAY which has issued a good earnings.