Earnings are Just the Start of Potential Profits
Several stocks have seen a major uptick as a result of recent strong earnings.
Palantir Technologies (PLTR), Confluent (CFLT), and Arm Holdings (ARM) were just a few of the big movers this week.
And while it may seem like the fun is over after a company reports earnings, the truth is the buying opportunities are just beginning.
In fact, there’s a post-earnings chart pattern I recently discovered that’s so potentially lucrative I’m calling it the “Earnings Profit Surge.”
This surge occurs after a company reports an earnings beat, and it results in steady gains for the stock over and over again… sometimes for more than two months!
I explain it all – with visual examples – below.
How to Identify the “Earnings Profit Surge” Chart Pattern
Let me show you a recent example of what an Earnings Profit Surge looks like. Take a look at the chart of artificial intelligence stock Nvidia (NVDA).
Check out the gap in the chart. That happened on the day the company reported earnings.
After reporting, you can clearly see by the uptick in price.
Now, here’s where it gets interesting.
You’ll notice the stock continued to go up after the earnings announcement. This rise is what I call the Earnings Profit Surge.
And the two vertical lines show when I’d typically get positioned in the trade based on the three “green light” variables in my TPS system.
Also, look at the pattern – how the stock goes up, then pulls back, and then goes up again.
This repeats all the way through April to the beginning of May…
Meaning there were 30-plus days of consistent positive momentum for this ONE STOCK.
So in theory, you could’ve traded this ONE TICKER over and over again – based on this pattern alone – for consistent gains.
Here’s another example – this one’s in Microsoft (MSFT).
Notice the similarities to the NVDA chart…
Again, you have the earnings gap, the trading window and the Earnings Profit Surge.
Let’s take a look at one more example: Gilead Sciences (GILD).
Again, we see a major boost after earnings… and then a steady wave of gains and pullbacks.
Once you learn how to identify this pattern, you won’t be stuck trying to trade on earnings day. There will still be plenty of opportunity to profit for months afterward.
In short, earnings day isn’t the be-all, end-all for potential gains… It’s actually just the start.
Here are a few reasons I love the idea of trading the Earnings Profit Surge:
- It gives you several opportunities to trade after earnings come out. More opportunities mean more potential wins.
- While it’s common to trade on earnings, the truth is you don’t always know which direction a stock will go. So you end up betting on whether the stock will go up or down, which is really no different from gambling.
- By following the Earnings Profit Surge, you can play the consistent momentum generated by earnings news. It’s a simpler, more predictable way to trade.
YOUR ACTION PLAN
Since I launched Profit Surge Trader back in August, it’s been a new source of consistent profitable trades. And this system is perfect for playing post-earnings rallies during earnings season.
For example, this year I’ve closed 10 winning trades for a 100% win rate using this strategy, including a 165.89% return on SMCI in 2 trading days. I’ve also closed 3 straight winners on BURL, with the latest coming this week on a 35.29% gain in 3 trading days.
This is the easiest – and potentially the most lucrative – form of trading I’ve ever used, and I’m inviting you along for the ride.
FUN FACT FRIDAY
A Feast on Par with Thanksgiving: Super Bowl Sunday is the second biggest eating day of the year in the U.S. behind Thanksgiving. Pizza is the No. 1 snack sold, with Americans ordering an estimated 12.5 million pies for the event. Dominoes alone sells an average of two million pizzas on gameday, and our Head Trading Tactician recently got positioned on DPZ in The War Room.
To see exactly how Bryan Bottarelli is trading this stock, click here to join The War Room.
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