Gamestop (GME)

[AbeSmith]

Anybody taking a position in them ahead of the earnings release Monday? On Fast Money the "lone wolf" seemed confident that they would have very good earnings?

[brownsfan019]

Glancing at the chart Abe, there's some strong resistance at 60.00.

A trade could perhaps be buying the break of 60.00. From a candle perspective I would not go long here. Based on earnings however, there could be a pop in some direction. No idea as I don't personally play earnings plays on stocks anymore.

[AbeSmith]

	Quote:	brownsfan019
	Glancing at the chart Abe, there's some strong resistance at 60.00. A trade could perhaps be buying the break of 60.00. From a candle perspective I would not go long here. Based on earnings however, there could be a pop in some direction. No idea as I don't personally play earnings plays on stocks anymore.

Good call on the strong resistance at 60. But here is what I was thinking:

Earnings release might be a good play during uncertain economic times. Might be less choppy. So I think I will look at the premarket activity. If I see some strong buying at the premarket that might signal that it will be one of those plays where the price goes up ahead of earnings, so I will then buy early in the day, and if it price goes up according to plan ahead of earnings release then I might be able to move my stop to break even giving me a free trade ahead of earnings.

[MrPaul]

	Quote:	AbeSmith
	Good call on the strong resistance at 60. But here is what I was thinking: Earnings release might be a good play during uncertain economic times. Might be less choppy. So I think I will look at the premarket activity. If I see some strong buying at the premarket that might signal that it will be one of those plays where the price goes up ahead of earnings, so I will then buy early in the day, and if it price goes up according to plan ahead of earnings release then I might be able to move my stop to break even giving me a free trade ahead of earnings.

Abe,

A friendly tip. Start looking for things that would signal to you that this trade will NOT work out. When you look at things from that perspective you can judge more clearly.

If you start looking for reasons that it shouldn't/isnt work(ing) out and you don't find any, you have a better indication of strength than just being outright optimistic.

Good luck!

[AbeSmith]

	Quote:	MrPaul
	Abe, A friendly tip. Start looking for things that would signal to you that this trade will NOT work out. When you look at things from that perspective you can judge more clearly. If you start looking for reasons that it shouldn't/isnt work(ing) out and you don't find any, you have a better indication of strength than just being outright optimistic. Good luck!

Excellent advice Paul.

[AbeSmith]

Well, this GME just went nowhere.

[ranj]

Hey Abe,

I try to avoid trading on the day before and after Thanksgiving, not enough volume.

[AbeSmith]

	Quote:	ranj
	Hey Abe, I try to avoid trading on the day before and after Thanksgiving, not enough volume.

Thanks Raj. I hear that often, but what is the reason for that? Is low volume mean that it is more choppy? Does it mean that the price moves are not as sustainable?

Anyways, on the YM on Friday there were some good pivot plays.