Today, CSCO released earnings at 4:30pm. They increased revenues but net income was lower because of a charge. In after-hours trading, it is DOWN about 4%. However, I really do not think the news is that bad, since income was down due to a charge... Tomorrow morning, I would like to open a position. Do you all think this afternoon's trend will continue down, or will people realize that the news is not that bad when the market opens and the price will rise? I am totally confused. In a situation like this, would it be better to buy it, or short it? I know I could also not do anything, but I am just curious to your opinions.
If it's trending down - sell it. If it's trending up - buy it. If it's not trending - range trade it or scalp it. Always use a protective stop. Or do nothing with it - it costs very little to watch. ps. I didn't vote
You might be right, but let tomorrow answer the question. 4% is a lot for CSCO, but it is not extreme enough to take the expectation of a countermove to the bank. Betwer trade imo is to wait until after the open, if it gaps down, see how it handles the gap.
Excellant counsel Plumlazy, buy strength, sell weakness, place a butterfly or calendar spread if trading sideways.........