Either way, if you are a newer reader, my general gameplan going into earnings is to lighten up on positions and then get them back after the lemming reaction is over. Assuming the lemming reaction of course does not crush the chart. By doing this I miss the glory of the +14% move after earnings, but also protect myself from the -18% "glory".
We have 2 names reporting tonight that have been massive outperformers, one with a massive short position - Netflix (NFLX) - so I could see that stock +/- 10% in about 4 hours. F5 Networks (FFIV) has been a standout in the networking space, but when 'hot money' is hanging out with you in any stock, you need to be careful. While I like the new information given at each earnings report, I don't wish to participate in the gambling circus of it all, so we'll assess the fallout after these 2 report. I've already taken some profits in both names during the past week but am going to take them down to about 0.6% exposure each with the sales today.
Long FFIV, NFLX in fund; no personal position