The Last of the Earnings
Chartz with Jartz- With earnings season winding down, the market has experienced increased volatility over the past two weeks. Most of our GAME DAY & GAME TIME holdings have already reported for the quarter and ,as a result, we have re-positioned our portfolios into a longer-term hold scenario. The last position in GAME TIME to report earnings was Macy’s (M). Over two trading periods, May 14th and May 17th, M climbed over 17% leading into their Before Market Opens (BMO) earnings report on May 18th. Because of the previous uncertainty following earnings reports that multiple companies have experienced this quarter, we decided to realize a gain of about 7.5%. We used half of the Macy’s position to add to a current holding, EXACT Sciences (EXAS), that was down based on earnings. The biotechnology company's stock price was adversely affected after increasing revenue by 15% year-to-year but, unfortunately, this fell below expectations and the price dropped. Adding to down a position can help to decrease the average cost basis while setting up for the potential of returning more on the upside if the chart pattern reverses. Below are the charts of Macy’s and EXACT Sciences.