JM86
New Contributor
After following this stock market for the past 4 months, (mostly by watching news and following the stocks I own) I feel like the "melt up" as people seem to be calling it, is rising prices looking ahead to a strong earnings season which starts in a couple of weeks. Does anyone else think this is the case?
I'm new to trading, and I don't consider myself a stock picker whatsoever, but I like the idea of making some bearish bets into earinings (puts, put spreads, etc.). The reason is I think the slowly, broadly, rising market is calling for good earnings, so strong earnings shouldn't push prices much higher (if I'm correct here). But, on the other hand, if a stock's earnings are disappointing, it should get killed as that premium for strong earnings comes out of the price.
So assuming my idea is correct, I need to find stocks that are most likely to have this news factored into the price, so I want to set up a screen.
So far, Im looking for stocks with high P/E ratios relative to peers, but much lower forward P/E ratios (meaning that higher earnings than previously reported would justify the high multiple)
Does anyone have any ideas to help me narrow this down a little more?
Is this whole thesis way off???
I'm new to trading, and I don't consider myself a stock picker whatsoever, but I like the idea of making some bearish bets into earinings (puts, put spreads, etc.). The reason is I think the slowly, broadly, rising market is calling for good earnings, so strong earnings shouldn't push prices much higher (if I'm correct here). But, on the other hand, if a stock's earnings are disappointing, it should get killed as that premium for strong earnings comes out of the price.
So assuming my idea is correct, I need to find stocks that are most likely to have this news factored into the price, so I want to set up a screen.
So far, Im looking for stocks with high P/E ratios relative to peers, but much lower forward P/E ratios (meaning that higher earnings than previously reported would justify the high multiple)
Does anyone have any ideas to help me narrow this down a little more?
Is this whole thesis way off???
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