Today I'm going to tackle something completely different and see if MarketClub's Trade Triangle technology can help you anticipate good or bad earnings before they are announced.
I randomly selected 20 stocks that have recently reported earnings and took a look to see how the Trade Triangles were positioned in each of those stocks before each company announced their earnings. Again, I only used the market-proven Trade Triangle technology to see whether you should be long or short a stock, or just be on the sidelines.
The results even surprised me, out of the 20 stocks that I picked, you would have been in positions in 12 of them. 11 were outright winners and there was one loser. You would have taken a position in the market on the close before the company reported its earnings. You would then exit the position on the close of business the next day.
So how did the Trade Triangles do with the other eight stocks?
The remaining eight stocks were on the sidelines. Being on the sidelines helped avoid five losing trades, meaning the market did not live up to its earnings. However on the other side of the coin, you missed out on three gains by being on the sidelines. When you analyze the missed gains and the avoided losses, you still come out ahead by having a position on the sidelines.
THE HOUSING MARKET CONTINUES TO SHINE
After yesterday's news that new home sales rose nearly 16 percent in January, The National Association of Realtors (NAR) showed a much bigger than expected increase in its pending home sales index today, which reached its highest level since April of 2010 in January. NAR said its pending home sales index rose by 4.5 percent to 105.9 in January after falling by 1.9 percent to 101.3 in December. Economists had expected the index to increase by 3.0 percent.
Wait a minute...is it 2011 or 1999? LinkedIn's (LNKD) IPO was originally priced at $45. However, it opened at $83 yesterday morning and was at $90 in no time (where it remained for most of the morning). It sky rocketed to $120 later on, and then dipped to a closing of nearly $95!
At $90 per share, LinkedIn would be valued at $8.5 billion...one of the largest tech IPOs since Google (GOOG) in 2004. If you were to factor those numbers in for your calculations, LinkedIn is trading at nearly 570 times last year's earnings! This adds some controversy over the worthiness of its current price tag considering that LinkedIn valued itself at a mere $2.32 a share in the spring of 2009.