I think the best form of earnings trading is after hours, in which you take a position on the stock before the market closes. You hold out for the earnings report.

 see how well you did. this bear market you can predict the reaction of the market.

for example today, Men's Warehouse, MW is releasing earnings, at the estimate of 70 cents, if you feel the company cannot beat the estimate of course the stock will fall.

Also things to consider when you shorting or getting long into earnings:

Industry the company is in.

Price to Earnings Ratio.

Past Earnings.

My crystal ball doesn't work that well, last night I was convinced SOLF would come out with good earnings. Put in a pre-market order, the earnings report was nearly triple of previous quarter. When it shows up on my screen it's down 900 basis points.

   You are so right!  I read the report on solf also and thought there is no way that one won't go up.  I checked it today and couldn't believe that it was being punished.  I don't have an answer.  Maybe just ease into a position by only purchasing  40%  and then  30%  and then  30%.  That definately was a surprise.

The bears do this on purpose to push the little guy off the stock, they start a downward trend for the day people panick they sell, once the stock gets to a new bottom they will turn around and rebuy at lower prices, and then the stock will raise again...if you have been watching FNM and FRE for the last few days it's been going up, they pushed all the private sector out and now rebuying, once they private sector says, hey it;s doing well jump back in, they'll let it ride a few days then start their selling off again, FNM and FRE arent out of their hole and wont be for a long while and the shorters know it...FNM has 5 straight days of gain even with the bad news lurking...FRE has had 3 days of gains.....dead cat bouncing