Earning season offers some of the best opportunities for profitable trading. PEAD or post earnings announcement drift is a well studied and proven market anomaly. Stocks which have significant earnings surprise or acceleration, breakout post earnings and rally for next 3-6 months as market reacts to this new earnings power. Sometimes these rallies last years.
Here is an example of a earnings breakout from last earnings season:
OPEN: Opentables Inc.
OPEN had a big earnings surprise and it had a high volume breakout on earnings day, since then stock has been going up. So if you are looking for a profitable strategy to trade, you might be interested in putting together a working plan for next earning season.
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How to trade earningsHow to trade earnings Part2
How to trade earnings Part3
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Related posts from last earnings season:
Earnings Season- Time to be very careful...
Earnings and Dan Zanger
Earning Surprise System for $1495
Trading Earnings Breakouts
Earnings Acceleration- Long Term Impact
Trading Earnings Breakout -Part1
Trading Earnings Breakouts -Part2
Trading Earnings Breakouts -Part3
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