sunset 700x437 - January effect, earnings and OPEX

What is the January Effect?  

simple answer    http://en.wikipedia.org/wiki/January_effect

I stated weeks ago, that we could have a nice Santa rally followed by the January Effect……..  Guessing how high we go is not my game, but riding the wave until we get there, IS.

Do you play earnings?   

simple answer:NO

If you are an investor, you are not “playing” earnings, you are investing through them for many years.  If you are a trader(day or swing), YOU DON”T PLAY EARNINGS!!!!!!     If you are a gambler(cuz that is EXACTLY what it is) feel free to roll the dice.

The only success you will have “playing”/gambling on earnings, is when the BIG MONEY(institutional) is front running the action with options.   And YES, they do know something, most of the time.

What the heck is OPEX?

simple answer: http://en.wikipedia.org/wiki/Expiration_%28options%29

The 3rd Friday of every month options expire(obviously we  have weekly options too).  This action usually creates volatility, and often you will see a low print in the market  Thursday/Friday, the  week before expiration.

 

I still feel the financials($FAS, $C, $GS, $JPM, $BAC) will lead this market higher into Jan Opex.   Buy the dips and use stops.

 

Good Luck to all

 

 

14 thoughts on “January effect, earnings and OPEX”

  1. If playing earnings mean picking a directional bet, I agree with your statements. If it’s playing the volatility skew that is present, then completely disagree that playing earnings =gambling.

  2. Fitz,

    Do you have an e-mail address? I have a few ideas about your web site I’d like to see but would rather not flood your Twitter account since you get so much action there anyway.

    Dean
    AKA: jetsticks

  3. Steve,
    i am a directional day trader.

    so, in my world, YOU DONT PLAY EARNINGS.

    good luck buddy,

    David

  4. Dean,

    i am working on the website , and will have a “contact” page up top, with my email assigned for just this site.

    thnx,

    David

  5. Richard,
    thnx for the comment.

    will be working on the site , the next few weeks,……see ya soon

    David

  6. Thanks Fitz for the time and effort you put into your posts. After losing a lot in the recent AAPL sell off, I’ve been sitting on the sidelines trying to overcome a lack of confidence. But I’ve been watching and learning from you. Your charts have been spot on and your methods are teaching me a smarter way to trade. I finally stuck my toe in and began trading again last week using your method on some small trades and even a small Yahtzee feels great. Thanks so much for teaching me to trade price! I look forward to learning more on your site.

    Casi

  7. Been following you for a couple of weeks on twitter. Thanks for the charts and trade ideas. Looking forward to your new website.
    Bill

Leave a Comment

Your email address will not be published.