So everything in the market is appropriately priced given the efficient markets hypothesis. When earnings reports come out, new information is given to markets and thus is the largest logical driver of growth and in some ways the only buying opportunity. Duh.
80% of s&p companies have been beating earnings.
So I'm doing an experiment. I'm taking $1000.00 and will buy all in on a stock every afternoon, before its earnings report and sell within the first half an hour of the trading day afterwards. I will record the results and let you guys know what happens.
Qualifications:
Some days have many earnings reports, so I will at most pick two equities and invest 50/50.
I will do a quick google search/ chart look at a few of the equities and arbitrarily pick the "better" one based mostly off of the sentiment of the first article headlines I see.
Finally, I will buy in at 12:30 ish EST because that is typically the low point in the day, being lunch and sell by 10:00 EST- the usual peak of the day. It is, after all, my actual money.
If the market tends to move 7% a year and there are four reports a year, then it wouldn't be unheard of to think that 1% of that gain would be from each reporting day that beat expectations.
Submitted October 10, 2017 at 07:02PM by cofveve1234 http://ift.tt/2yXQGTo
