LEARNING LESSON: On a down day, take your profit and look for another opportunity to take a profit in the same direction. Don't get excited about it changing directions completely as that doesn't happen often and many times it just returns to where it starts.
Tesla had some after hours movement Thursday from news that the board will pursue hiring a financial analyst to determine the valuation of the company to move the process forward for Elon Musk desire to make Tesla private. By open Friday it gave back the after hour gains and then some, but did charge higher and ultimately ended the day even.
LEARNING LESSON: Try to avoid after hours momentum as it can be reversed the next day and is often wrong. Instead look to buy at the best price during open trading market hours.
Example: Sunrun was driven down below $12/share after reporting earnings Thursday afternoon. It finished after hours trading around $12.67. It fell to $11.80 after open Friday morning and moved up nicely a dollar from there. This stock is loved by solar customers and employees of Sunrun and the numbers were good except for the earnings per share which was due to an accounting change. If the numbers look good and the price action is not, look to see if there is poor guidance given on the conference call. If it is clear then it is obvious that the after hours traders are wrong and you will get a rebound the next day. Macy's is a perfect example of this after their first quarter earnings call.
Apple opened lower today and moved up quickly. This appears to be a common theme as they stay closing above the trillion dollar amount of $207.,7.
Tariffs are working so well that... Who knows what will happen next week. Home Depot, Walmart, Macy's and other retail companies are reporting next week. Happy trading.
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