Keryx post-trade analysis

The following is on Keryx (and I don’t know them or what they do). That’s not important in spreadbetting.

Spotting patterns and trends that are meaningful and exploitable, is the important business. Keryx was showing signs of flattening in the few days approaching their earnings release (ER). Based on my strategy: Another Way and A strategy: Earnings Releases (now being modified), I decided to enter Keryx going long and I’m currently in profit, and have moved my stops up, to lock in profit and fight off greed (one of the enemies).

The flattening pre-earnings release was something I had identified as a positive indication of price moving upward after the ER. The chart below is a 2hourly chart for the total of Keryx trading – it’s such a young stock. Yes the overall trend is down – you could draw a straight line from top let to bottom right in your minds eye and see that. But even in that sort of trend, patterns of reactions near earnings releases can be identifiable and exploitable. This is market psychology at it’s most conspicuous.

Profiting on this depends on correct entry point and correct exit point. We don’t love the stock and stay with it. There is no stock! You don’t own anything in spreadbetting.