With an earnings event creating huge volatility, it seems logical to short a post-earnings play as it becomes “overextended”. I’ve done a LOT of backtesting around this theory, and have not been able to materialize any hint of a profitable strategy. Shorting momentum stocks with a strong catalyst like earnings can be dangerous because they […]
This came out of a conversation I had on Twitter with @PephStock. I plan on going into much further detail about how I use the Trade Ideas platform to facilitate my automated trading, but this is a quick brain dump I offered up this morning. I’m using trade-ideas to automate my trades (more info here […]
Historically, most of my success has come from trading on the long side. Up until 2018, we were in a bullish continuation market, so buying earnings-driven continuation breakouts made sense to me. Now that I have access to a dedicated earnings scanner, I realize that there is a ton of opportunity for shorting. Here’s a […]
When I search for the best stocks to buy, I look for three easily identifiable catalysts: a positive reaction to earnings, a high percentage of the float sold short, and a technical breakout.
Any AIR member will attest to a stock’s ability to generate abnormal returns in the sub $20 niche, especially when an earnings catalyst is applied. This became apparent to me as I was introduced to the “penny stock” niche in mid 2012, and I immediately recognized the potential for exponential growth.