The Calm Before the Storm

Within the past couple of months the markets have been extremely volatile, as the global recession fears and concerns about the European debt crisis have shaken the investors’ confidence. The concerns over the slowing economy are also casting a shadow over the upcoming earnings season.

Several companies have lowered their revenue and EPS estimates for the rest of the year, which may signal a disappointing Q3 earnings season. Just in today’s premarket session, we saw The Scotts Miracle-Gro Company (NYSE: SMG) and Natus Medical (Nasdaq: BABY) announcing lower estimates.

The traders should not stay on the sidelines though, as possible earnings misses and beats can provide very lucrative trading opportunities. The significant misses tend to send the shares sharply lower, which will provide numerous short opportunities within the next weeks.

As always, it is important to get ahead of the markets by receiving the news before the stocks begin their rapid moves. One new way to stay on top of the news is to interact with other traders on Benzinga’s free chat that was launched last week.

Your,
News Desk Ninjas