A Bounce for Halliburton Shares!
Making A Move – Earnings Due Monday, July 24, 2017
U.S. oilfield service companies' second-quarter earnings should easily top last year's depressed results. This improvement in earnings is mainly due to expanding shale production driving revenues; particularly for suppliers of land drilling rigs, tubing and hydraulic fracturing services in North America.
And Halliburton Company (NYSE:HAL), a provider of technical products and services to drillers of oil and gas wells, is one of the beneficiaries of this situation; as it is expected to swing to profit in the quarter from year-earlier losses.
The Stock Market Keeps-On Keeping-On
Nasdaq, VIX Break Records and the COMP’s Longest Winning Streak
Wednesday saw the S&P 500 INDEX (SPX) mark the 4th straight close above 2450, which verifies that the breakout is truly underway. Both the SPX and Nasdaq Composite (COMP) hit new record highs yesterday, as the financial sector rallied around Morgan Stanley's earnings and Apple stock (see article) heads toward its longest winning streak in almost three years.
Dow Jones Industrial Average Gains Despite IBM Drop
The Dow Jones Industrial Average (DJIA) finished at a record closing high, despite a sharp loss from IBM, which reported subpar earnings results (see article).
Although risk is escalating, the CBOE Volatility Index (VIX) -- or the stock market's "fear gauge" -- closed below 10 for the fifth straight session, a new record.
Stock Market Euphoria Still Not Reached!
Signs Show That Stocks Are Pointed Higher!
It's been a great few months for stocks, and the stock market euphoria (meaning the end of the bull rally – market top) has still not been reached; signifying that the rally isn't anywhere near over yet.
The Breakout Continues!
The stock market is displaying signs of complacency, where any negativity is spun into a positive light; probably in a belief/enthusiasm to thrill/exhilaration stage according to the psychology of the market cycle.
Netflix and Harley-Davidson Winning Trades!
Netflix Stock Climbed – Harley-Davidson Stock Crashed
Here is an overview of the above stocks after reporting earnings. Both trades were placed on Monday, July 17, 2017 with Netflix reporting that afternoon and Harley-Davidson next morning; producing major profits within 24 hours of executing the trades.
Call and Put Stock Options Saved the Day!
Earnings Season Strategies
Earnings season strategies are all important when it comes to profiting from earnings predictions. These predictions made by Wall Street analysts are one of the main drivers of stock price action around the earnings release dates; and companies are judged by their ability to beat market expectations. These consensus estimates, in relation to the actual reported earnings, is one of the main points of focus for investors and traders.
There is usually plenty of potential volatility that may occur before and after an earnings announcement; and an understanding that stocks can fall on good earnings and rise on poor earnings is important when establishing or managing a stock or option position.
Playing company earnings, before and after reports, to your advantage, can be quite tricky most times as earnings are very difficult to predict, but the team from Stock Options Made Easy (S.O.M.E) have managed to excel in being able to profit during the earnings season, as can
be seen by the results.
Best of Trading,
Director of Stock Options Made Easy