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Some of the best opportunities can be found in beaten-down oversold stocks.
Especially when there’s still a good amount of fear.
Remember, crises often create opportunities, as we’ve learned from some of the richest investors. Warren Buffett, for example, tells us to be “fearful when others are greedy, and greedy when others are fearful.” Sir John Templeton taught us to buy excessive pessimism.
Even Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.”
Some of the top stocks you may want to consider are:
AbbVie (ABBV)
Over the last few weeks, ABBV plunged from about $215 to about $165, where it’s become oversold. It’s also over-extended on RSI, MACD and Williams’ %R. From its current price of $173, we’d like to see it rally back to $200 initially.
Even better, while we wait for the recovery, we can collect its yield of 3.8%. Analysts at Guggenheim also reiterated a buy on the stock with a price target of $214.
Just like carving up a chicken, there’s primarily four meaty parts to earnings report trading. Using the analogy of the breast, drumsticks, thighs, and wings – the key is to make sure the meat is fully cooked!
Post-Market Reaction: Thigh
First of all, not every earnings report is playable in the post-market. Only the thicker, widely traded stocks should even be considered, because volume and spreads will make a big impact on liquidity. Listed stocks tend to have wider spreads by nature. In addition to the liquidity concerns, the stock must actually have a tradable reaction. There needs to be a tradable reaction.
Keep in mind that the most domestic (U.S. - based) companies have conference calls to discuss the earnings reports, usually around 5:00pm, if the earnings are released post-market. Many times, stocks will actually rise about 15 minutes ahead of the conference.
Similarly to last week, they are a number of FOMC Members giving presentations this upcoming week. But as I stated last week, “I don’t think there’s anything anyone of them can say that could match what President Trump might have to say. Understand, I have no clue what’s likely to be shared by the President. The problem is, I don’t think the Market has any idea either.” Actually, I think the most important event this upcoming week will be each of this week’s Upcoming Earnings Announcements. I’m not so concerned whether a company meets or beats estimates, I’m more concerned about their Guidance going forward. How many will actually skip this traditional aspect of Earnings Season?
Tuesday, April 22
Before the Open: Haliburton (HAL), Verizon (VZ)
After the Close: Tesla (TSLA)
Wednesday, April 23
Before the Open: Boeing (BA)
After the Close: International Business Machines (IBM), Las Vegas Sands (LVS)
Thursday, April 24
Before the Open: FreePortMcMoran (FCX), Valero Energy (VLO)
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