Earnings will be in focus | stockbee


Earnings will be in focus

Within next couple of weeks the earnings announcement season would start. The pre announcement season will be the first focus for the market. Mid April onwards market will turn its attention to earnings. 

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.

Related posts : 
How to trade earningsHow to trade earnings Part2
How to trade earnings Part3
Earnings and Bulkowski
Improving odds in earnings breakout

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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