Hunting the dips in decent companies after hysteric sell-offs. That's what I'm doing in US stock markets. The other strategy that gave profits was buying into undervalued sectors with great perspective, which I don't do now, as the last sector I believed in was the IT-related (FB, AMZN, GOOG, BABA) and it was all fun and games until this year where it just doesn't show enough optimism to be considered attractive for significant annual returns. Therefore, the second strategy that rakes in profits is buying into illogical reactions of investors after the stock publishes positive news...sounds crazy, but this happens everyday.
Today, we have MGM resorts. Results came out, all in-line with expectations to the cent, and I quote: "Q1 EPS of $0.29 in-line. Revenue of $2.82B (+3.7% Y/Y) in-line." Mind you, they have resorts in China now: "MGM China kicked in with a 25% jump in revenue to $596M as the MGM Cotai contributed. Adjusted property EBITDA was $152M vs. $145M a year ago." Great news right? -8% down in single day. So, I'll hunt for cheap stocks once the resistance holds, it has few of them in this region (red lines on the chart) so the one that slows the fall and keeps it there for 2 days should be good enough for me to enter and wait for the exit at 34 level.
To be continued...
Today, we have MGM resorts. Results came out, all in-line with expectations to the cent, and I quote: "Q1 EPS of $0.29 in-line. Revenue of $2.82B (+3.7% Y/Y) in-line." Mind you, they have resorts in China now: "MGM China kicked in with a 25% jump in revenue to $596M as the MGM Cotai contributed. Adjusted property EBITDA was $152M vs. $145M a year ago." Great news right? -8% down in single day. So, I'll hunt for cheap stocks once the resistance holds, it has few of them in this region (red lines on the chart) so the one that slows the fall and keeps it there for 2 days should be good enough for me to enter and wait for the exit at 34 level.
To be continued...