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How to find big winners using pre market gap stocks

March 2, 2018

Big winners are triggered by earnings releases. Stocks with rapidly growing earnings attract buyers and funds attention on earnings day if the earnings were massive acceleration.

The stock will gap up and go. Which makes your life even easier as you just have to focus on handful of stocks up 4% plus pre market. Investigate their earnings release and see if there is a "Massive Earnings acceleration" surprise.

"Massive Acceleration " married with months of base or "neglect" is what produces big moves as funds buy these stocks aggressively . If you can find these stocks on day of earnings , you are smarter than the smartest money on the street . And all it takes is 10 to 15 minutes of running a process to find these.

MAGNA

MA massive earning acceleration

G gap up

N neglect of few months to years

A sales acceleration

Look for these criteria in any gap up..

In order to do this successfully you need very streamlined process. If you just tracked these handful of links you should be able to find big winners periodically.

Zacks Earnings : https://goo.gl/CsJviq
Seeking alpha earnings news https://goo.gl/zkAKiB
Zacks Earnings surprise charts https://goo.gl/xgXYAj
Earnings Whisper email summary : you need to sign up for this . it is free https://www.earningswhispers.com/
IBD highlighted stocks with good earnings https://www.investors.com/ paid
Marketsmith (paid)

A blowout earnings stock will not be missed if you do this daily.

Most will gap 8% plus and go up 20 to 50% on earnings day itself.

I many times buy these kind of stocks in after hours or pre market itself.

If you missed the first day move , you can wait for it to form a valid anticipation setup and buy it or buy it on valid 4% or $ b/o.

If you have Marketsmith you can scan for such stocks and create a watchlist. I have shared a scan for this in Marketsmith scans document.

Pay special attention to stocks that gap up with MGNA criteria and volume above 1 million on breakout day. Even better is b/o with 10 million plus volume. The real big ones will often have That indicates massive fund buying .

Pay attention to first or second "massive Acceleration"

Five to ten big ideas like this in a year can make you year.

And all it takes is 15 minutes...

So what is your excuse for not finding them.....

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