“Experienced traders control risk, inexperienced traders chase gains.” -Alan Farley, The Master Swing Trader
Good morning. Today, I am looking at an Overnight Trade that I think can be very profitable come tomorrow. The market is in a pretty sad downward trend that hopefully can be broken tomorrow, so for now, we want to avoid Buy Picks straight up. Yesterday was a so-so day for us. Our Short Sale of the Day in Bristol-Myers Squibb Co. (BMY) worked out for about a 2% gain as we got involved at 24.35 and exited at 23.87. BMY appeared to be quite overweight at 8% gains on what was looking to be a down day, so we were able to ride its overvaluation. Our Buy Pick of the Day never gained any ground. We got involved with Southwest Airlines Co. (LUV) thinking that it would profit from some good news on profit expectations from the IATA and Southwest announcing it was seeing lots of turnaround in passenger rates. The stock slowly headed down the entire day. We got involved at 11.99 and exited at 11.66 for a little under a 3% loss.
Overnight Trade of the Day: Vail Resorts Inc. (MTN)
Analysis: If you are not familiar with Vail Resorts Inc. (MTN), they are a resort company that operate in the Rockies, Wyoming, California, and Nevada. The company operates five of the top ten most visited resorts in the USA. They focus on skiing and snow-sport themed resorts, and the company is set to report earnings tomorrow morning. They are slated to report earnings at an EPS of 1.83, which is significantly better than their 1.58 estimates from one year ago and beat of 1.65. I like this company because I think they represent a golden opportunity to beat estimates, have a nice future ahead, and are heavily oversold in the short term.
One of the main reasons that I like this company is that they have seen a significant rise in their revenues. The snow-sport industry has boomed in the 09-10 season due to the Winter Olympics as well as a recovering economy that has touched all
the lodging companies. Vail reported at the end of April that they had seen nearly every aspect of their business improve year-over-year. Skiiers were visiting more, buying more things, spending more on food and drink, and staying longer. The company reported that from January to mid-April had seen total skier…
