Over the weekend there was lot of discussion on the Season of opportunity is approaching thread about how to monitor earnings and news catalyst. Muddy detailed his method. If you go through his approach, you will find he uses commonly available sources of news to find his trades.
Here is a simple human algorithm I use to find possible earnings and Episodic Pivots candidates before they make a move:
The system is simple it just needs to be followed with military precision , no ifs and buts.
1 Isolate IBD 100% plus earnings
2 Isolate 100% plus from WSJ (IBD does not have foreign stocks)
3 Track after hours reaction for earnings announced in evening. This is easily available on these pages:
Updates Advisory and Surprises
Winners and losers
4 Track morning 100% plus announcements on Marketwatch . First thing in morning I go through this page and look at all after market announcements and early morning announcements. That is how I saw PENX early morning.
5 In the morning I fire up the Interactive Brokers Top % gainers screen with three conditions:price>5, volume >100000 and stock type= stock. This gives you a list of top 40 price gainers ranked by price % change. As candidates start appearing on this list I quickly research them, if I do not know about them. This scan gives EP candidates throughout day. That is how I saw LLNW on Friday.
That is it. After that in the morning and during day you just have to enter trades from the list as they start popping .If you do that, you will enter many Episodic Pivots , before they qualify for EP scan and benefit from the 10% plus move.
The remaining earnings which are not in 100% plus but which precipitate rally, you will get in Episodic Scans. Besides earnings there are couple of other news catalysts like new products or approval in biotechs, retail sales, earnings guidance raise, brokers/exchange monthly transaction figures, which trigger EP's, so I monitor them. That is the quick, dirty, and low cost way to do it.