May 7, 2015

Disney earnings ended up being released before market opened on Tuesday, so I couldn't buy into it. Instead I purchased 200 shares of Groupon at market ($7.11) and 10 shares of Tesla at market ($237.99) to play earnings, and 10 shares of Kroger at market ($68.24).

After a rough trading day on Tuesday, GRPN released it's earnings report after the market closed. It beat EPS by $0.02, but missed revenue by about $90 million. Investors were also worried about bad leadership among the company, and is questioning the direction that the company is headed towards. As a result, the stock tumbled down to about $6.30. I plan to hold GRPN until it rebounds and place a Stop Loss as a safety precaution. GRPN is just hovering above it's 52 week low, so I am confident that it will rebound.

I placed a Stop Loss on BABA at $80, and for once, BABA dropped below it's 52 week low so it was automatically sold off. Maybe I shouldn't have set such a high Stop Loss... hm.

After another rough trading day on Wednesday, TESLA released it's earnings. Overall positive: they were able to meet quota on car deliveries, while beating revenue by several million dollars. Despite their positive financials, investors were questioning their spending and have speculated. Over the past quarter, they have "overspent" and may not have enough capital. The big question for TSLA is: where will you get more capital, what's the demand on the new Model X, and how will you enter the large battery industry? Tesla dropped during the market trading hours, but rebounded in the after market because of earnings. From a technical standpoint, TSLA is on an uptrend and may be able to break the 52 week high of $290.00. I'll set a stop loss at the moving average, and if it recedes back to the moving average, I will sell it, assuming that it will not go up any higher for now.

Other thoughts: I could have bought into CHEGG and EA, but decided to go Kroger instead. Chegg jumped nearly 10% and EA jumped 5% after earnings on Wednesday.

Also, I was always eyeing Alibaba, Yelp and Tesla. I bought into Tesla too late, because of my lack of buying power, and I sold BABA and YELP too early. BABA jumped 7% today after their earnings report released, and YELP jumped nearly 25% due to speculation that they may be bought out after a poor Q1. Maybe I should trust my intuition a little more, and hold on for the ride. These two stocks literally jumped the day after I sold. And my gut told me to purchase TSLA a few weeks ago when it was near $190, and now it's at $235.

I'll be experimenting with intra-day trading. I have to find the average range that a stock will span within a day, and set a buy and sell limit. I'll most likely be experimenting with more volatile tech-companies like Groupon, Yelp, and Twitter etc.