This earnings season, the semiconductor sector has seen broad-based strength, and my long-term position in Qualcomm (QCOM) has delivered a significant profit surge. My unrealized gain currently stands at +35.28%, with the stock price now at $216.100 and my average cost locked in at $159.738.
Looking back at this trade, I primarily executed a dual strategy of ‘bottom-value accumulation + right-side breakout position addition’:
First buy point (bottom accumulation): When the stock price previously fell near the 200-day moving average (MA200) and began consolidating sideways on shrinking volume, I confidently initiated a left-side position based on trust in its fundamentals, successfully catching a major intermediate-term bottom.
Second buy point (trend-following add-on): As the semiconductor cycle improved, the stock broke out of its consolidation range on rising volume with moving averages aligning in a bullish formation. After confirming the right-side trend was firmly established, I decisively added a second position, enhancing my cost advantage and expanding profit potential.
Upcoming Earnings Season Strategy:
Extremely thick profit cushion—unshaken by market turbulence: With a safety margin exceeding 35%, I’m completely unconcerned about sharp short-term swings around earnings season. My core strategy remains ‘thinking big picture.’ Barring a fundamental reversal in underlying business logic, I won’t easily relinquish my low-cost positions.
Staged profit-locking plan: The current price is approaching the prior high (around 247). If market sentiment becomes excessively euphoric ahead of earnings, causing a single-day surge that pushes the price far above the 5-day moving average, I’ll consider taking partial profits by reducing 20% of my position in the 230–240 range.
Raised defensive exit level: I’ve moved my protective take-profit stop up to the MA10 or a key support level. After earnings are released, if the market sells the news and breaks below critical moving averages, I’ll execute my defensive plan to secure these substantial gains.
Earnings season tests not only your judgment but also your conviction in holding positions. Do you think Qualcomm can break directly through its all-time high this time?