{"id":15849,"date":"2024-06-21T17:00:54","date_gmt":"2024-06-21T21:00:54","guid":{"rendered":"https:\/\/mtatradeoftheday.com\/?p=15849"},"modified":"2024-06-21T16:54:01","modified_gmt":"2024-06-21T20:54:01","slug":"my-no-1-strategy-for-trading-earnings","status":"publish","type":"post","link":"https:\/\/mtatradeoftheday.com\/my-no-1-strategy-for-trading-earnings\/","title":{"rendered":"My No. 1 Strategy for Trading Earnings"},"content":{"rendered":"
As we near the end of June and with companies due to report earnings in July, I wanted to share my top strategy for trading earnings.<\/p>\n
Now, it’s no secret earnings day can change a stock’s trajectory.<\/p>\n
And it’s common for traders to position themselves ahead of earnings in hopes of riding a big upswing or downswing.<\/p>\n
But the truth is…<\/p>\n
Earnings day is just the start of many, many profit opportunities.<\/p>\n
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<\/a>.”<\/p>\n 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!<\/p>\n I explain it all – with visual examples – below.<\/p>\n How to Identify the “Earnings Profit Surge” Chart Pattern<\/strong><\/p>\n 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<\/strong> (NVDA).<\/p>\n <\/a><\/p>\n Notice the earnings gap in the chart. That happened on the day the company reported earnings.<\/p>\n Then the stock was bullish after earnings day – as you can clearly see by the uptick in price.<\/p>\n Now, here’s where it gets interesting.<\/p>\n You’ll notice the stock continued to go up after the earnings announcement. This rise is what I call the Earnings Profit Surge<\/a>.<\/p>\n 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<\/a>.<\/p>\n Also, notice how the stock goes up, then pulls back, and then goes up again.<\/p>\n This pattern repeats itself all the way through April to the beginning of May…<\/p>\n Meaning there were 30-plus days of consistent positive momentum for this ONE STOCK.<\/p>\n So in theory, you could’ve traded this ONE TICKER over and over again – based on this pattern alone – for consistent gains.<\/p>\n Here’s another example – this one’s in Microsoft<\/strong> (MSFT).<\/p>\n <\/a><\/p>\n Notice the similarities to the NVDA chart…<\/p>\n Again, you have the earnings gap, the trading window and the Earnings Profit Surge.<\/p>\n