[ad_1]
On this extraordinarily unstable market, it pays to develop a buying and selling technique that may work in any market atmosphere. And with Q1 Earnings on the point of warmth up in only a week or two, this, in flip, ought to present merchants with a ton of alternatives to earn money by way of specializing in these firms that not solely beat expectations, however information greater as nicely.
An ideal instance of this technique is Lululemon (LULU), which reported its earnings final week, beat expectations and guided greater as nicely. Because of this, the inventory rose over 13% when its numbers have been revealed.
I level to LULU as, after the preliminary pop to the upside, it pulled again 25 factors, offering a possibility to get entangled in a commerce for many who didn’t personal the inventory when earnings have been reported. And I’ve proven one other potential entry stage in case the inventory pulls again much more, offering a good higher reward-to-risk commerce.
One other firm that reported this previous week was Paychex (PAYX), which each beat expectations and guided greater. Because of this, the inventory moved greater, hitting an all-time excessive.
What I like about this technique is it focuses on the “better of the very best” — that’s, firms that present the one-two punch of each beating earnings expectations and guiding greater as merchants are inclined to gravitate to winners. It then turns into a matter of letting any preliminary euphoria put on off whereas searching for ranges to enter on any pullbacks.
With a view to put this technique to work, you want to have the ability to determine these firms that each beat earnings expectations and information greater. At EarningsBeats, we have developed our “Robust Earnings ChartList”. Our present listing, accessible completely to our subscribing members, incorporates 489 firms (and accompanying charts) which have crushed Wall Road consensus estimates as to each revenues and earnings, are liquid and have strong technical charts. In different phrases, these firms you need to look at as potential buying and selling candidates. If you need to get entry to all the firms on the listing, just click here to sign up for our FREE, broadly learn EarningsBeats Digest (EBD) and we are going to embrace a hyperlink in Monday’s EBD freed from cost.
At your service,
John Hopkins
EarningsBeats.com
Subscribe to ChartWatchers to be notified each time a brand new submit is added to this weblog!
[ad_2]
Source link