Trading Earnings Stocks | Finding The Right Gap Plays

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yo what’s going on people how y’all do can all hear it’s late night here but figure out giving you kind of a a quick video on how to pick the right earnings gaffers you’ll get a pretty good day in the chatroom nothing too epic I mean 2200 bucks I left a lot of money on the table like selling a little bit too early but you know the one thing that I do really good is yeah I picked the right earning stocks every day you know so like today you know out of all the gaffers I picked the two right ones I am IC and W so one of the things that I do every single morning is you know I run a scan on trade ideas for you know stocks that are gapping up due to earnings right that’s one of my many bread and butters you know have 18 patterns that I teach in our trading boot camp about ten of them you know we use all the time to show up every day a handful of them are a little bit more specialty but a few of them come off the tenants that you get your power and an explosive moves from news right like you know we’re in the technical analysis but technical analysis alone would it give you know make a stock up 30% in a day right it wouldn’t make a stock go up 50% of day or anything like that and so like when we’re choosing these things you know one of the things you’ll see is like this m. i. c was down 30% today right his W was down 15% today you know and that was at the open you know by the time the day was over it was down 22% as Mike was down 41% and so the tenant is obviously that hey technical analysis is good but its earnings and pr’s that give you that extra boost and if you can marry your technicals to it obviously you have something that’s a lot more powerful so one of the things that I do every day you know I’m running my morning scans on trade idea to figure out like what is gonna be what is going to be a gapper that I would like to trade right and so like you know there are dozens of these things right dozens of these things it’s like so how do you pick which one like so Mike is the first one that I hit right off the bat right the first one I hit right off the bat in our chat room you know I trade live in front of these guys in our chat room every single day I’m on screen share right talking about these plays so we hit this lot Mike right off the bat I shorted this thing and got down to 37 I started listing at 44 bucks right so 44 17 so I got this thing like pretty much right at the open okay I know our be set up on a quicker timeframe so how do you know that’s gonna be the one that goes verse of say a Roku right which gapped down at the open but then see like it popped up right how do you know right what one is going to be the one that flushes down verse flushes up and so that’s obviously comes with the nature of the territories you got to pick the right ones well the thing with Mike that I really like that is so important compared to so many other stocks that you know may have earnings if look see how the gap down here let me remove my Bollinger Bands here for sexy you see something a little bit more clear but like you notice the gap down here there’s really no price action price support anywhere here right so this is just clean from wherever it closed to wherever it came down see this is all this air space air space air space air space so when we’re thinking about air space like right I want to be able to trade things that don’t have anything around it right there’s no price action nothing because that tells me that I’m not gonna have some type of hidden level of demand come in or some level of support that may come and pop it you know because that can happen you know something like CLL CLR you know that one actually get down and then it reversed you know for part of the day so you know we’ve got to be in same thing with Roku right and so and I don’t like going counter trend it’s not my particular cup of tea so I always want to pick the right gaffers up or down and I do it very systematically but the main thing is of course like I’ve got to have that hot clean charge on my daily to do it otherwise what’s going to happen is you know you’ll get a scenario like you know what was the the other day or a couple weeks ago like Pay. Pal for example right Pay. Pal for example you know the day its earnings came out you know it separated into its kind of 200 esta you know 50 SMA and then as soon as the earnings came out like yeah the next few days we went down but the day of the earnings that came on it squeezed higher and so like you know there was no trade necessarily intraday you know it just wasn’t clean enough you know like the Roku was to me like this thing gapped down but like you can see like it kind of gapped down into support you see that so like we can’t really I can’t short that I’ve got multiple levels of support I got my Bollinger Band I got this you know 200 I got this price support and so that ends up just being a spot that you know could get bought it doesn’t mean it’s gonna get bought up but it means it could get bought up intraday and now you know you’re gonna have something that’s not cleaned that’s not gonna have any follow through and so that’s the difference between you know picking a gapper that looks great verse picking a gapper that doesn’t and one of the interesting parts about roku is that probably if it gapped down to 36 people be like wow is that’s probably a little bit too much you know it’s down $20 and people would automatically think well it’s gapped down too much right because people always think that you now you know if something drops too far that maybe they think there’s no reward in it for you but you have to think about reward is just levels up where demand may flow into a particular name or stock and so I would have rather had my Roku capped out anywhere back down here at least I would have had some room to fall verse here there’s all this action there and so you know we don’t necessarily get anything there so that’s just kind of a little bit word to the wise of how I choose these things and you know every day there’s so many of these up and down and so we do them to both the same but it becomes really really important to make sure that we’re able to pick always the right ones so I hope that helps guys leave me any questions or anything you have and I’ve loved seeing a lot of you guys on the lives on Wednesday it’s been a lot of fun but let’s keep that going to take care..

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  • So my watchlist today was 13 stocks, I should have narrowed them down to the top 5 or top 3. What is the average amount of stocks you have on a daily basis during earnings season ?