| Hey there!
Happy Saturday to all of you.
Can you believe that earnings season is here again?
We're already a third of the way through the year almost. Crazy!
Earnings season is always a chaotic time in the market, and it can be tricky to trade.
So I wanted to reach out with one piece of advice I think a lot of people miss out on.
I've mentioned before, I always think you should clear your positions on any companies that are about to report earnings.
But actually, there's something you should be mindful of beyond that.
During earnings season, you will often see sectors move in correlated ways.
Sometimes, a rising tide raises all ships.
For example, good news in the banking sector is good news for all the banks.
But during earnings season, that isn't always true.
Often, during earnings, good news for one stock is seen as a threat to another stock in the same sector.
Look at this example from last July:
Intel and Qualcomm are both part of the same specified superconductor sector.
So when Intel reported a big beat and sank massively as a result, Qualcomm shot higher automatically, regardless if its own earnings information.
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