Thursday 14 March 2013

A show of why EARNINGS is IMPORTANT!!!

Dear Friends,

For those who have invested in singapore stocks, you might notice that some stocks have fallen more than the others. Stocks like EZRA and Interra Resources and Semb Marine have fallen from its high and keep on falling. It does seem difficult to find a strong support to hold the prices up.

But there are other stocks that have done relatively well these few days. They have dropped a bit only, and some are looking to go to new heights. Stocks like K-Green, Ezion, OSIM, Sing Post, Guocoleisure seems to be holding up well and stays resistant!

Notice any similarities?

Not from the charts, but from the fundamentals! It is earnings! Those stocks that are holding up well are still strong and may break their highs still. Those that are weak as quoted above are stocks that have results less than expectations and big players seem to take the opportunity to "SHORT till it drops!!!" Not Shop, but Short! This is not great singapore sale to buy cheap on stocks that have not done well. Most likely this quarter these stocks are the more vulnerable to weakness. Keep it inside your trading diary too!

I do not know if you keep track of earnings, but it is a key fundamental study of how good a company will be in the next 3 months. I always believe that "Fundamental drives the stock direction, and Technical only provides the right entry and exit." This is more evident in tough times!

Do remember also that earnings is so unpredictable! If you are a short term player, always sell before earnings. Recently I recommended Interra Resources and STXOSV not knowing that earnings is a few days to one week later. Both failed me because of earnings. I was stopped out. SORRY! I did not locate the earnings date then.

Next time earnings season, we be more careful in the earnings dates, you should too!!!!

For now, keep a trading diary listing all stocks that have performed good with earnings. The stocks that I said did well for earnings are stocks 3 weeks back that I keep inside my trading diary. And they are still strong!


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