Holding US Stocks Over Earnings

[Anonymous]

Hi everyone,

I just have a question for the group. The momentum system I am working on buys at the start of the month and holds for a full month with no trade management in between. I am just wondering what the view is on holding stocks that have earnings out over the month ahead. The options being to simply hold over earnings or remove these stocks from the ranking list.

Does anyone know if you can test the effect of removing stocks from a ranking list that have earnings over the coming 1 month period? I can’t see any fundamental field for pulling in the next earnings date.

Thanks

Oliver

[TrentRothall]

I personally haven’t done very much trading over earning releases but just some observations that I have picked up is that once a stock has upward momentum quite often if there are gaps over earnings they tend to go the way the stock is moving.

I would think to do if you are trading a small universe such as the NASDAQ 100 a lot of the stocks might be reporting in the same month so you might have to end up taking signals that aren’t as strong, and then earnings might not go your way.

I’m not sure if I can help you in the way of testing that though. Also this would not be the first time observations are incorrect… :ohmy:

[Nick Radge]

If you have tested the strategy without excluding earnings then you have your answer already.

[Anonymous]

Thanks Nick, that’s what I was thinking.

[Author]

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