$AMD Good earnings does not mean AMD will rise in price and will likely fall drastically and here's why. What happens is that hedge funds with large positions in say AMD are waiting for a high relative volume day like tomorrow to exit their positions because liquidity will be high. As soon as earnings, good or bad, are reported they will exit their position while buyers with less cash enter. But the dreaded scenario for the buyer will occur; the price will drop due to a panic sell intitiated by large positions closing during high relative volume. And I didn't even mention option premium sellers and high frequency trading at work dragging the price down as well. This happened to AMD last quarter. Please profit off it this time.
  • 10
10 Likes