I have entered early earnings plays using shares on BLK and FRC. Both have recent bullish Fisher transform signals that have room for a further upward run. BLK has a very slight negative score on the Zacks earnings surprise predictor (ESP), and FRC has a significant bearish directional index spread (+DI, -DI).
In both cases I’m giving priority to the Fisher transform. BLK’s negative ESP is too small to matter, especially given the ESP’s poor showing in predicting negative surprises, and the Fisher transform is more responsive than the DI metrics and so, presumably, is the stronger measure.
I exited BLK before the earnings announcement and FRC afterward. Both were profitable, thanks to the pre-earns run-up in their prices.
| sym | entry | exit | result ($) | result (%) | entry date | exit date |
| BLK | 522.54 | 534.17 | 11.83 | 2.2% | 1/5 | 1/11 |
| zacks rank | zacks esp | DI spread | ADX | earns est. | earns actual | |
| 3 | -0.26 | 80% | 28.14 | 6.068 | 6,24 | |
| sym | entry | exit | result ($) | result (%) | entry date | exit date |
| FRC | 87.49 | 90.70 | 3.11 | 3.6% | 1/5 | 1/16 |
| zacks rank | zacks esp | DI spread | ADX | earns est. | earns actual | |
| 3 | 3.26 | -46% | 36.89 | 1.15 | 1.10 |
By Tim Bovee, Portland, Oregon, Jan. 5, 2018
Disclaimer
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.
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All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
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