Here’s your earnings trade on the Nasdaq (NDA!). (October 19, 2016)

by DAN NDAQ 
NDAQ the Nasdaq ( NASDAQ:NDAQ ). Look at the 200-day moving average, the uptrend is pretty well defined. uptrend. Any pullbacks, they haven’t even fallen back to this level, nor do I think this will on this little pullback. Now, the company reports earnings on October 26th, so that is next week. That is definitely going to move the stock, but the trend is in tact, you can see the weekly chart. I don’t get any sense that there is the end to the trend here, this is holding.

So what you do is, if you are long the stock go ahead and stay long but just know this: Companies report after hours so your stop is not going to help you. If they report earnings that are disappointing the stock can be down 8, 9, 10 percent and you don’t get to do anything about it. So just know that. But the trend so far is your friend and it is upward. If you are looking to trade this stock take a small position, like a third maybe, even a quarter of your normal position size and then wait to see what the stock does, in reaction to earnings. If it trades up, depending on how it is trading then, you can add to your position. Or, you can simply say, “Thank you very much,” you sell the stock for a nice little profit.

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