035: Learn how to trade earnings


Financial Movers Podcast #35



Welcome to the Financial Movers Podcast. (today is, the time is e/t, and this is episode # …. , and I’m speaking to you from ...) No matter if you’ve been listening to this podcast since episode 1, or this is your first time listening, OR you’re somewhere in the middle of those two, I promise you'll finish this podcast today with more knowledge than you started it with. 

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Today’s Agenda:

  1. Earnings and how to properly play them (NOT HOW YOU THINK) I don't gamble them

  2. How are my calls doing from Monday’s pod (#33): LMT, TXN, CTVA

  3. New setups that have presented themselves over the week:

  • Before we get started, SPX on its 6th consecutive winning day and now having trouble breaking through 3,330 ---- RSI near overbought

1. Earnings for Thursday and Friday:

  • Thursdays earnings (TM on the watchlist from #33) 

  • Trading at $119.24 on Friday, hit $125.83 (+5.5%)

  • Toyota has 45 overseas manufacturing companies in 26 countries 359k / TSLA has 3 factories, a total of 48k employees and plans to expand.

  • TM has 15x the manufacturing facilities, 7.5x the employees 

  • Toyota spent $22 billion on R&D in 2018

  • That's more than all of TSLA’s 2018 revenue of $21B

  • Toyota Div 3.20% ($3.80)

  • Fridays earnings

  • I don’t gamble, but earnings are good to watch for Power Earnings Gap (PEG)

  • See which stocks PEG after earnings. Takes them to the “next level” of share price

Disney PEG

  • Gapped up +5.1% after reporting earnings (no idea if they were good)

  • Topped highest price since June 5th, before stock dropped lower ($127.82) hitting $130 (+10%)

  • Keep it on watchlist, patience. Don't want it to begin closing the gap which would be when price goes below today’s open $123.37

2. Calls from Monday:

  • LMT: $377.10 ----- Now $383.50 (+1.69%)

- As it goes higher, I move my stop up. From Friday’s low $371.44 to Monday’s low $376.29

TXN: $129.35 ---- Now $132.09 (+2.11%)

  • Initial target was to get to $132, which it has. Move to $136 is next. Moving my stop from Friday’s low of $125.43 to yesterday’s low of $128.71

Corteva (CTVA): $28.52 ----- sold yesterday at $28.81 (+1%)

3. New setups that have presented themselves over the week: Two PEG’s to watch

  • TTWO

- Gapped up (+4.77%) after earnings on monday. Watch to see if $170 can hold support while waiting for EMA’s

  • UPS

  • Gapped up (11%) after reporting earnings last Wednesday

  • Holding strong above $135, which could be new support levels made after gapping

  • Having difficulty breaking through $145, watch for selling and consolidation, but i doubt it closes the gap. Just needs MA support levels to catch up while it cools off.

This concludes episode #35 of the Financial Movers podcast.

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