TRADING THE EARNINGS CATALYST

In our latest weekly webinar we discuss Trading the Pre-Earnings Catalyst.

CATALYST

A catalyst can provide what most traders I know prefer…volatility, or a higher than average increase in price movement.  Catalysts can range from potential drug approval, sales numbers, analyst day meetings, product announcements, etc. Some catalysts have known dates (e.g., Apple $AAPL product announcements, analyst day meetings); others can occur without warning (e.g., drug approval, sales numbers).

I find earnings season to be a great known catalyst for trading stocks, particularly in a bullish market, as prices tend to gain bullish momentum ahead of earnings announcements. Earnings season are the months where the largest majority of companies report their corporate earnings, which are the months of January, April, July, and October.

In our webinar session we discuss the following guide for trading the earnings catalyst:

PRE-EARNINGS TRADES DISCUSSED IN OUR WEBINAR

COST: BUY THE EXPECTATION…SELL BEFORE THE EVENT

 

GOOGL: TRADING THE EXPECTATION BEFORE THE EVENT…AGAIN

 

NOC: TRADING THE EXPECTATION…WITH A TRAILING STOP

 

The above are but a few of the dozens of examples I could share but suffice it to say that four times a year earnings season can provide the astute trader multiple opportunities for capturing bullish earnings momentum.

Watch the detailed discussion on Trading the Earnings Catalyst HERE (or click on video below):

A previous version of this post appeared in SEE IT MARKET.

 

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