{"id":24642,"date":"2025-07-29T07:30:00","date_gmt":"2025-07-29T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=24642"},"modified":"2025-07-28T14:58:19","modified_gmt":"2025-07-28T18:58:19","slug":"take-profits-on-your-high-fliers-now","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/take-profits-on-your-high-fliers-now\/","title":{"rendered":"Take Profits on Your High-Fliers Now"},"content":{"rendered":"\n

This is a big week for earnings announcements. Of the 500 stocks in the S&P 500 index, 164 of them report earnings this week. If they follow the path set by the companies that have already reported, then the results should be outstanding.<\/p>\n\n\n\n

Indeed, 80% of the companies that have posted earnings results so far have beaten analysts\u2019 expectations.<\/p>\n\n\n\n

That\u2019s great news. But, it hasn\u2019t always led to great action in the stock prices.<\/p>\n\n\n\n

In fact, this earnings season is becoming a \u201csell on the news\u201d event. One by one, market leading stocks that have ramped higher over the past several weeks have pulled back \u2013 hard \u2013 following their earnings reports.<\/p>\n\n\n\n

Look at this action in Netflix (NFLX)\u2026<\/a><\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

NFLX reported earnings on July 17. Heading into the report, the stock was trading near $1,280 per share \u2013 up about 50% from its April low.<\/p>\n\n\n\n

Netflix crushed the numbers. The company beat expectations for earnings and revenue, and it raised its guidance for the rest of the year.<\/p>\n\n\n\n

But, the stock fell following the report.<\/p>\n\n\n\n

Investors bought the stock in anticipation of good numbers. The stock rallied ahead of time \u2013 effectively discounting good results. Then, once the good results were out, investors sold on the news.<\/p>\n\n\n\n

Several weeks of gains went \u201cpoof\u201d overnight. NFLX is trading back down to where it was in mid-May.<\/p>\n\n\n\n

Investors in IBM<\/a><\/strong> have a similar story\u2026<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Just like NFLX, shares of IBM came into earnings season showing big gains off the April low. And, just like NFLX, IBM reported fantastic results.<\/p>\n\n\n\n

Yet the stock sold off hard following the report. Investors had already discounted good news. And, once the news was out, they sold the stock.<\/p>\n\n\n\n

We saw the same action in American Express (AXP)<\/strong><\/a>.<\/p>\n\n\n\n

Ditto for Texas Instruments (TXN)<\/strong>,<\/a> and for most of the stocks that have reported results so far this season. The stocks rallied ahead of the report, then they sold off once the news was out.<\/p>\n\n\n\n

Keep this in mind if you\u2019re holding stocks in anticipation of a post-earnings rally. For this earnings season, it may make more sense to take profits on the high-fliers ahead of the reports rather than holding through the announcements.<\/p>\n\n\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\n

\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just go here<\/a> to check it out.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

This earnings season is becoming a \u201csell on the news\u201d event.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-24642","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/24642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=24642"}],"version-history":[{"count":6,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/24642\/revisions"}],"predecessor-version":[{"id":24672,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/24642\/revisions\/24672"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=24642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=24642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=24642"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=24642"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=24642"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=24642"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=24642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}