I bought TD stock on June 8, 2016 at $57.62. In retrospect, that was wrong timing as the stock dropped for 5 consecutive trading days following my entry point, hitting a low of $55.02. Being so far off, it became a buy-and-hold situation. More punishment was to follow as the stock hit a low of $54.20 on June 27, 2016. Yesterday, TD closed at $56.90. Today, TD touched a high of $57.45.
Research has a positive outlook for TD eanings to beat estimates, also based on TD's earnings beat history. TD is the most shorted stock on the TSX. If TD beats earnings, there will be short covering which will be an additional factor to propel the stock price upwards. If TD misses earnings estimates, the stock price will drop.
BMO announced earnings today and beat estimates. BMO stock was up 2.5% at its peak today.
Decision time again. TD earnings announcement is on Aug 25. One trading strategy I have is to avoid holding a stock past earnings announcement. One never knows what the earnings news will bring, or how the market will react. Once again, maybe best to sell into the rise before Thursday. And be happy with the $0.55/share dividend payout received Aug 1, 2016.
Nothing ventured, nothing gained. Risk - Reward. The show continues ...