In the December 10th Seasonal Forecaster newsletter, Lions Gate Entertainment was highlighted. It had just fallen back to a well-defined trading range.
Lions Gate had just released a very popular movie (The Twilight Saga: Breaking Dawn, Part 2), and expectations were good for a strong Q3 earnings report in February. Previous retreats to the lower trendline of the trading range quickly rebounded to the upper part of the range. LGF was showing strong accumulation. And, to complete the picture, I covered the seasonal tendencies LGF stock had for that time of year.
“When LGF moves this time of year, it can move significantly. A trade matched to the high probability direction and 4-month time-frame, with a tight stop-loss in the low probability direction, is one possibility. LGF could also be traded just for a move back to the upper part of the channel.”
In the January 4th, 2013 newsletter I mentioned how LGF was still showing strong accumulation.
LGF has gained 23% since December 10th. Today, Lions Gate will announce earnings after the close. LGF has a certain track record of post-earnings reactions, covered in today’s Seasonal Forecaster issue.
To find out more, type in http://www.markettamer.com/seasonal-forecaster
By Gregg Harris, Market Tamer Chief Technical Strategist
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg’s passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
Also on Market Tamer…
Follow Us on Facebook