be advised that we have some key market moving economic releases due out this week (as highlighted). in addition, we are also in the thick of earnings season and have several key companies reporting this week, such as AAPL & AMZN on thursday after the closing bell (both of which are active shorts on the site). remember to use the link to the economic & earnings calendars under the “Tools Of The Trade” section in the right-hand sidebar of the site.
while many traders will close a position before an earning release to avoid getting caught on the wrong side of a gap, i typically prefer to hold my swing positions as i believe that the upcoming earnings release is more often than not priced into the charts. however, there are other factors that go into my decision to hold or close a position before earnings, such as embedded gains (or lack thereof) on the trade, the stock’s past history of earnings induced gaps, my expectation for the current earnings season as well as the recent trend (are the majority of companies moving higher or lower after reporting), etc.. the important thing is to be aware of when your positions report so that you can take proactive measures to hedge or adjust your position size commensurate with your risk tolerance.