- Teradyne stock reported on April 18th that net revenue had fallen 29%. Normally, one would expect that investors would react poorly to this news. But the semiconductor stock caught a bid and has been in rally mode with the rest of the market. Just shows you that sentiment can be more important than reality when it comes to stock price action. That's what makes trading an extremely difficult game. If investor sentiment were poor, TER might've been taken out to the woodshed. But the fish are biting.
- When investors are in this mood, it's as if the speculative juices are flowing. Earnings announcements get increasingly volatile as folks are chasing and anticipating the next 5% gap. Now if sentiment were poor, companies like TER could report that they are having a 29% growth in revenues, and the stock would go down. Exactly the opposite of what's happening now.
- Speaking of difficult games, in the CNBC stock gambling contest, I am now in the top 19% thanks to AAPL yesterday. I then rotated into MSFT and DOX for their earnings after the bell. Good so far. Today, I am dumping my MSFT and DOX at the end of the day, and buying 5 potential beauty queens. Four of them report earnings after the bell today, and one before the bell on monday. I don't own any of them with real money; this is just for CNBC gambling purposes only! CCJ, MSTR, PCU, CHRT and HERO.
- The only comment on the latter is that since the TV show "Heroes" is on monday, I just had to go with Hiro. Er, HERO. Kind of like betting on football games depending on which team has the coolest helmets.
