Look to Go ‘Risk On’ as Alcoa Reports

by Jon Markman | July 8, 2014 2:14 pm

With several major Q2 corporate reports set for release this week, earnings season has come back into focus. The notable releases start with Alcoa (AA[1]) this evening and Wells Fargo (WFC[2]) on Friday, with the pace picking up next week.

The financial media are discussing the potential for upside risk to earnings, with Reuters highlighting recent strength in economic data and a positive skew to guidance. In other words, some pundits believe that investors are not optimistic enough going into earnings, and they will be caught flat-footed by not being exposed to enough risk.

Going into the rest of the week, I expect risk-taking to come back in a big way, led by the small-caps. One I like right now is A10 Technology (ATEN[3]). Shares of the app delivery control company slipped on Monday, but are still doing fine since I recommended them in late June[4]. Its service is crucial to companies like Netflix (NFLX[5]), so ATEN should have a very bright future ahead.

Jon Markman operates the investment firm Markman Capital Insights[6]. He also offers a daily trading advisory service, Trader’s Advantage[7], and CounterPoint Options[8], a service that helps individual traders make steady, consistent profits with volatility-related instruments.

Follow Jon Markman[9] at Google+.

  1. AA: /stock-quotes/AA-stock-quote/
  2. WFC: /stock-quotes/WFC-stock-quote/
  3. ATEN: /stock-quotes/ATEN-stock-quote/
  4. in late June: http://investorplace.com/2014/06/aten-economic/
  5. NFLX: /stock-quotes/NFLX-stock-quote/
  6. Markman Capital Insights: http://www.markmancapital.net/
  7. Trader’s Advantage: http://www.jonmarkman.com/
  8. CounterPoint Options: https://order.investorplace.com/index.jsp?sid=SE8121
  9. Jon Markman: https://plus.google.com/109535523304238577573?rel=author

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