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 […]
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 […]
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.
If your definition of an earnings winner is driven by analyst estimates, then you may be surprised that one of the most bullish indicators for earnings winners is of technical nature. I judge an earnings win by the reaction, not some arbitrary number a random analyst estimated as significant. My decisions to buy, hold, or […]