1. Next Earnings Season Begins on October 16th

The first quarterly earnings report of every quarter is the company AA (Alcoa corporation). The 3rd quarter reports will begin on October 16th. 4th quarter reports will be in January, 1st Quarter in April and 2nd Quarter in July. There are a few companies that will be the month after, but this is the general rule of thumb.

2. Typically Occurs During Pre-Market/Post Market

Quarterly earnings reports are never released during market hours  (9:30AM-4PM EST). Companies will either release them at around 8am during pre-market or around 4:05 PM. There will occasionally be mid-day conference calls, but they are not common. 

3. Trade the Reaction To The Report

Quarterly earnings reports have the attention of all shareholders and investors. For many large funds and shareholders, these reports are made or break. These reports tell everyone exactly how well or poorly the company did. Novice traders make the mistake of trying to guess before an earnings report whether it will be good or not. 

This is pure gambling. The edge in earnings trading is trading the REACTION, not trying to guess the direction of the stock prior to the runup.  

4. ALWAYS Check When a Company Reports Earnings Before Entering

I’ve heard so many horror stories of swing traders who became bag holders because they had a big position on right before a stock’s earnings report. On long term positions set a reminder on your phone of key earnings dates, and other dates of significance for the company.

5. Volatility Increases

90% of the time a stock will see a large increase in volatility after an earnings report. This can be your best friend or your worst enemy, depending on whether you can make fast decisions. If utilized correctly, volatility can offer huge returns in a short period of time, whether you are a swing trader or a day trader. 

6. High Relative Volume

Since earnings reports are so made or break for investors and traders, a lot more buying and selling will occur right after a report is released. Stocks will often trade 5-10 times as much as their average trading volume after earnings reports. This liquidity is ideal for us momentum traders. 

7. Great Day Trading Opportunities

Earnings reports can present AMAZING day trading opportunities due to the increased volatility. It is not uncommon to see 5-10% (sometimes more) moves in just a few minutes during the market open. With the right strategies and sound risk management, these periods can be the most profitable times of the trading year for you. 

8. High-Quality Swing Trading Opportunities

Earnings reports can often ignite stock trends that last for several days or weeks. Swing trading is the bests way to capitalize on short term momentum following an earnings report. This can be a more passive way to capitalize than day trading.

9. Earnings Are All About Expectations

Earnings reports are guided by analyst expectations. Positive earnings reports can cause stocks to tank. Negative earnings reports can cause stocks to spike. If a company can have a good earnings report, but not beat analysts expectations, and sell off as a result. The flip side of the coin is that a company can report awful earnings. But if they’re not as bad as what was anticipated, it can still increase in value. Always remember:

10. Price Action Is King

One of the most common mistakes traders make during earnings season is getting too biased. The company reported good earnings, and they get along, and then the stock tanks once the market opens. Remember: The actual earnings don’t matter, only the REACTION to the earnings. 

Earnings Season Masterclass on Thursday

On Thursday we are hosting a free workshop to show you some of our best strategies and tactics for navigating earnings season. With earnings season next month, now is the time to prepare and master strategies to help you capitalize on these opportunities.

Click here to sign up for the free workshop. 

The post 10 Crucial Tips for Earnings Season Trading appeared first on Bulls on Wall Street.

This catalyst will often ignite huge moves in stocks and bring in high relative volume as large investors and traders look to enter and exit their positions in response to the earnings reports. Here are 7 videos that will teach how to capitalize on earnings plays:

Picking The Right Earnings Gappers

One of the first steps to capitalizing on earnings plays is finding the best ones to trade. Every day there are dozens of stocks gapping up and down, and 90%+ of them are not worth trading. You need to know which stocks are worth trading, and which ones to avoid. Here is how I filter and find earnings plays to trade:

How to Trade the Open During Earnings Season

Most of the action during earnings season happens in the first 30 minutes- 1 hour. You need to know how to trade during the market open  (9:30 EST) in order to capitalize on these plays. Here are some tips for trading the market open during earnings season:

Earnings Breakdowns

We talked a little bit about an earnings breakdown play in the video above. Shorting earnings breakdowns is my favorite setup during earnings season. Here is another example of an earnings breakdown play I took in $X last year:

Earnings Breakouts

If shorting isn’t for you, there are always plenty of earnings breakouts to play during earnings season. as well Here is an example of an earnings breakout and how I trade them:

VWAP Setup

If you missed the initial move in an earnings play, the VWAP pullback play is the perfect setup to get you a low-risk entry after the stock has made a big move up or down. Here are some tips for trading the VWAP pullback play on earnings plays:

Combating FOMO

With so many stocks moving during earnings season, it is easy to get FOMO and make some reckless trading decisions because you missed on a big mover. Here are some tips to combat FOMO so you don’t make reckless trading decisions during earnings season:

Full Webinar On Earnings Trading

If you got a couple of hours on your hands, we recently did a full webinar on how to trade during earnings season. Check out the webinar below:

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For the next two weeks, we are offering a 50% LIFETIME discount off all chatroom subscriptions. Instead of paying $199 per month for either of our chatrooms, you will only pay $99 for as long as you are a BOWS member! The same applies to annual subscriptions!

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Deal expires on July 18th!

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This earnings season is very unique. For the first in around 10 years, we have stocks reporting earnings during a major market correction. There are signs of a major trend change in the overall market trend, which has been in a non-stop bull market since 2009. You are going to see a lot of similar daily charts in the stocks we will discuss here. Many of these companies have had a strong run the past year, but are now pulling back strongly, in conjunction with the overall market conditions. Most of these will be on watch for a short play.

When trading earnings stocks, you should never try to gamble and guess what the earnings report will be beforehand. No one knows whether the report will be good or bad, or how the stock will react once it is released. Buying or shorting a stock right before an earnings report is pure gambling. All of the earnings plays we will talk about you should be trading AFTER the report has come out.  Here are 5 great earnings plays to watch for next week:

$UAA

UAA is always a great stock to trade during earnings season. It doesn’t have the biggest range normally, but during earnings a ton of range and volume comes in, making it amazing for day trading that day. There is no significant nearby daily support except for the $16 area. If it reports poor earnings and gaps down below this area, we will likely see a strong selloff. If that happens, this will be on the top of my watchlist for a short.

$TEVA

Very similar looking daily chart to UAA. Like UAA, it has history of making big moves, in both directions, in response to quarterly earnings reports. Last August it had a monster multi-day selloff in response to an awful earnings report, and it dropped from $31 a share to $19 a share in just 3 days. TEVA is a great stock for momentum traders, as it has great liquidity and range to trade off of. On all earnings plays you are looking to trade, you should always check how they have reacted in the past to earnings reports. For a complete checklist for trading earnings plays, checkout this guide here.

$SPOT

Spotify has had a strong run the past several months following its initial public offering in April. It has almost hit a high of $200 a share after IPOing at around $160. However, in October we have seen a major pullback, dumping to the $140’s in the past week. The stock has a huge intraday range. After the last earnings report in July, it moved over 10 points the next day. We will likely see a similar type of move next week as well, but possibly to the downside. It’s all time lows are at $135, and there is no other significant support besides the $140 level. If they have a bad report and gap below these levels, we could see a huge selloff.

$W 

Wayfair has been on a monster run this year since the poor earnings report it had in late February. It had a big selloff down to almost $60 a share, and has rallied all the way back to as high as $150 in September. There is very high short interest in this stock, with Citron putting out many high profile reports bashing this stock. However it has continued to squeeze despite the questionable fundamentals. It has pulled back in the past month, and it is approaching a key support area in the $105 area. If it has a bad report and gaps under this level, we would have a great shorting opportunity. This stock has a lot of room to fall.

$BABA

Alibaba has been a very strong stock the past couple years, running from around $85 a share to over $200 in just over a year. However since July, it has had a major pullback. The tariffs imposed against China and the departure of their founder Jack Ma have been partially responsible for the major pullback in the largest publicly traded company in China. This stock ia great momentum stock in general, and becomes even better after earnings reports. The $135 support is a key level. If they put out a weak report and it gaps under, we will likely see the selloff continue in the name.  

Free Webinar on Earnings Trading

Want to learn how to consistently profit on earnings plays? We are doing a free live webinar next week on October 29th going over the setups I use for earnings plays. During this 2 day online event, on October 30th, you will also get to watch me trade live to see exactly how I trade these setups.

Sign up for the webinar here.

The post 5 Earnings Plays To Watch For Next Week appeared first on Bulls on Wall Street.

Why Trade Earnings Plays

Earnings is a time where investors on all time horizons are making a decision about their positions. Big players make their decisions off of quarterly earnings reports. This means that big moves in either direction will often follow these reports, as these players enter and exit positions in a stock. A ton of range and volume will come into these stocks, and this means there is a ton of opportunity to make a lot of money in a short period of time.

10%+ moves in either direction are very normal in the morning following earnings reports. Stocks will often go on monster multi-day/week runs following earnings reports, creating great opportunities for swing traders. Earning season comes around four times a year, and usually lasts for 2-3 weeks. Mastering earnings trading will give you a skill set you can use to make money for the rest of your life.

Earnings Season Months 

In general, look for companies to release their earnings in January, April, July, and October.

Checklist For Earnings Plays

Here’s the biggest secret about earnings trading: the actual earnings report doesn’t matter. Only the reaction to the earnings. Whether the company beats guidance or falls short doesn’t affect how you should trade the stock. I’ve seen stocks with great reports sell off completely as soon as the market opens. I’ve also seen stocks with terrible earnings reports squeeze up 10%-20%. Price action is the only thing that matters. Here are the primary 4 things you need look for before trading any stock reacting to earnings:

1. High Relative Volume

The best earnings plays always have high relative volume. High relative volume always precedes every major move in a stock. It means there is a high probability that there will be an explosive move in the stock that day.  High relative volume means that the stock is trading 5 million shares that day, when it usually just trades 500,000 a day on average for example.

You can always tell by the premarket volume and the volume at the open if a stock will have high relative volume that day. If this stock that trades 500,000 a day on average trades 200,000 shares in premarket, it is a day where there is high relative volume. If the market open and this stock trades another 300,000 shares during the first 5 minute candle, that means there is high relative volume.

2. History of Running on Earnings

One of the most important factors to consider is a stock’s history of reacting to the earnings catalyst. A lot of stocks don’t get much momentum after an earnings report. You only want to be trading stocks that have made big moves in the past in reaction to earnings. History repeats itself in the stock market. You want to go back and look at a stock’s daily chart, and see how it reacted to earnings reports in the following days after an earnings report. This will tell you if the stock will likely make another big move. AMD is great example of stock that is great to trade on days it reacts to earnings:

You can see how much range comes into the stock after it has had an earnings report. Also notice the high relative volume that always comes in after, and how much it gaps up and down from the previous day. This is a good example of a stock to trade when it has earnings.  

3. No Nearby Resistance/Support

The best earnings plays gap up over all nearby resistance levels to the longside. The best earnings breakdowns gap down below support when you are short-biased. The less price history to the left the better. When there is no nearby resistance there is less supply to stop the stock from increasing in value. When a stock gaps below support there is lower probability of the stock finding buyers. Always look at the daily chart to see where a stock’s key support and resistance levels are prior to trading it.   

4. Large Range

Stocks like MSFT and CSCO don’t interest me because they only usually move 1%-2% a day. I want stocks that have the potential to make 5%, 10%, or even bigger moves. The goal is to capture a piece of whatever the stock is moving that day, if you are day-trading it. It is almost impossible to catch the complete move a stock makes. If a stock makes a 10% move in a day, it is rare to make a full 10% on a trade you make in that stock. However, it is realistic to capture 5%. If you only buy $5000 of that stock for that trade, you will make $250. These gains add up once you develop the skill set to do this consistently and scale it.

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Clean Daily Chart

Earnings plays are my favorite setup. The catalyst always has the best follow through. When you combine this with a clean daily chart, you are seeing a high-quality setup with a high probability of having a strong intraday trend.

If you are looking to the long side, you don’t want to see any resistance to the left of the stock’s daily chart. If you are looking to the short side, you don’t want to see any support to the left. Check out this video for a recent example of an earnings breakdown we played with $MIC:

History of Running on Earnings

Before trading any stock, you have to pull up its daily chart and go back a year or two. What has happened the last time the stock it had an earnings breakout or breakdown? Did it follow through? Or did it completely reverse? A good example of a stock that has a history of running on earnings is NVDA.

You can see the circled candles of all the times it has gapped up on earnings and followed through. This is what you want to see on the earnings plays you are looking to trade. 

Strong Daily Trend

You can see that NVDA is a stock with a strong uptrend. When a stock that is trending, gaps in the direction of the trend, the probability of it following through is very high. If NVDA gapped down on earnings, the probability of it following through to the downside is very low. On strong stocks, gap downs are usually bought up. For weak stocks, gap ups are usually sold into.

Liquidity

There is nothing worse than day trading illiquid stocks with huge spreads. It is easy to take big losses because of slippage. Illiquid stocks also rarely follow through as you would expect them to. When you look at a stock’s daily to see how it behaved when it had an earnings catalyst, you want to see it trading on above-average volume, ideally 1 million shares or more on these days.

Intraday Setup      

Even if you have all the ingredients mentioned above, you still need an intraday setup to get an entry. This will help you manage your risk in case the stock goes against you and increases the probability of the stock going in your favor if you are correct. In our MIC trade, we used an opening range breakdown to give us an entry. You need to master 1-2 intraday setups that will give you a chance to capitalize on these kind of plays.

Get Started With Our Free Trading Kit

Our trading kit is the best free resource out there for new and struggling traders. It includes

• Intro to Trading Course
• Comprehensive Trading Handbook
• Trading Consultation

Download your free trading kit here.

The post Trading Earnings Stocks | Finding The Right Gap Plays appeared first on Bulls on Wall Street.

Earnings are one of the strongest catalysts in trading. This catalyst will have the attention of investors on all time horizons. Long term investors, swing traders, day traders, and everyone else will likely be entering and exiting positions at the open after quarterly earnings are announced. You can get strong trends for day trades and swing trades to both the short and long side. Here are some tips for day trading stocks reacting to earnings at the open.

Wait for the Trend to Form Before Entering

The first five minutes of the open after a stock has had earnings are usually an incredibly volatile period. These stocks will usually trade well above their average true volume and sometimes outside of its typical daily range. It’s usually best to wait at least 5 minutes before entering a stock, to give it some time to show you its trend and range. If you’re a newer trader you may want to wait even longer, because you have to act very fast and decisively during the first 30 minutes.

Be Aware of How A Stock Typically Behaves on Earnings

You don’t want to be apart of every earnings breakout or breakdown. Some stocks will gap up and then fade on earnings. Others will gap down and then rebound. Check the daily of the past couple years on stocks the morning before the open with this particular catalyst. If it has history of having follow through momentum after earnings, it will increase the probability of the trade playing out. For more information on how to evaluate a stock’s proability to follow through, check out this article.

Always Keep Shares for the Bigger Move

Earnings trends will usually go on for hours and will sometimes even turn into swing trades. You will usually get the strongest trends with a gap up or down with an earnings catalyst. If the stock hasn’t made a move well beyond it’s average true range, you will almost always want to save some of your shares for a bigger move. Try to hold a piece of your shares until the point that you would take a position on the opposite side of your trade.

See how we evaluate an earnings play in this video:

If you want some direct feedback on where you are as a trader and your trading goals, you should take our free trader assessment for advice on how to take your trading to the level. We will also direct you to our free webinar “How to make $200 a Day Trading” to give you even more free insight on how to achieve consistency trading.

The post Trading The First 30 Minutes During Earnings Season appeared first on Bulls on Wall Street.

$NFLX During Earnings

On the 1 minute chart, NFLX broke underneath the $146.30 level. Once it did, we entered for a short at $146.10 with a stop at the high of the day. Immediately the stock tanked and we covered into the flush at $145.20 and $144.96. A few minutes later NFLX put in a bear flag setup and we reshorted the stock at $145.80 and covered at $145.31 and $145.4.

After the drop, it bounced back to support and we took it short at $146.10. We covered most of our position into the flush at $145.54, $145.47, and $145.11. These areas were near the VWAP but we kept a few 100 shares for the spike down.

But just because NFLX had a great move on earnings, doesn’t mean you should take it off of your watchlist. We nailed it again on Day 2. When NFLX spiked first thing in the morning, it faded off right into resistance. As soon as it flushed underneath the moving averages we took it short and covered into weakness. Every time NFLX popped into the VWAP, I reloaded my shorts with a stop above rode it down. Each time it broke below support I also added my position and covered into each flush while keeping some of my core position.

Remember, with earnings plays like this its important not be afraid of high priced stocks like NFLX.
In the last 2 days, it puts in just a tremendous range. But by trading with the appropriate size, it’s easier to manage your risk and you can also have $1000 days. Earnings plays are great because these stocks will always have order flow independent of the market. It will have its own range and volume and by marrying your technical factors with the fundamentals you can always nail these trades.

If you’re not sure of the steps and practices that we’re talking about you can learn them all here at our Bulls Bootcamp. We’re having an exclusive spring time bonus for our intensive 60 day course where we teach you exactly how I trade and why for only $2300. Not only that, our bonus also includes 6 months of free chat access and a Special Live Platform Setup Class on May 1. This deal is only for a limited time so to learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post Trading $NFLX (Netflix) During Earnings Season appeared first on Bulls on Wall Street.

How effectively are you swing trading the earnings gap down reversal setup?

Most likely not well, if you even trade the setup at all. Neglecting this setup is an unfortunate and expensive mistake that often does not show up in your trading stats.  As a result, specifically the earnings gap down reversal, you are not profiting from one of the most consistently profitable low risk-high reward setups around.

Here is why it’s neglected: the average swing trader doesn’t know how to trade gap downs!

Most commonly accepted gap down theories (remember most common theories don’t work!) focus on shorting the gap down as a downside continuation trade. The idea here is the downside momentum catalyst leads to a continuation move. This sounds great in theory, but in practice, it often plays out different.

Gap downs in momentum stocks that are not yet in full-fledged downtrends often reverse while flashing strong long entry signals. In other words, while most are looking to short, profitable traders are stalking countertrend long signals.

This is another classic setup where it pays handsomely to go against the crowd.

In today’s video, I show you how and why I entered Netflix ($NFLX) using the earnings gap down reversal strategy. The trade also illustrates the moving average remount setup and the moving average sandwich exit strategy.

You will learn how to:

1. Trade the earnings gap down reversal
2. Apply the moving average remount setup
3. Analyze moving averages for entry and exit signals.
4. Apply solid risk and trade management concepts.

Remember, our example is another in my series of live trade videos which makes it must watch: you’ll get into my head and see exactly how we plan and manage the trade as it develops. I’ll be back with another video on the exit.

This video is the second in the “Live” trading series. Check out the first video to understand how $BRZU made our watchlist.

Remember, members of the swing service get all of these trade alerts intraday in real time.

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week, and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post Swing Trade Secrets: How to Swing Trade Earnings Gap Down Reversals with $NFLX appeared first on Bulls on Wall Street.

Did I mention that it also reports earnings after the market close today?

We entered $AAPL in the Trade Report service at $125. Our plan was to ride it into earnings, and if there was enough of a cushion, to do something we rarely do: hold through earnings. The stock currently sits at $133, which gives us an 8 point cushion heading into earnings.

Now even if the stock has a bad earnings reaction and gaps down, we have mitigated our risk. And if we get a positive response we’ll get a huge win. This is the type of risk I’m willing to take going into earnings.

For those who are not in the stock, watch for a break of the $133.60 high.

Come check out our FREE TRIAL for our Part Time Traders service.  This service is great for those that work and cant monitor the computer all day. We have indepth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

https://bullsonwallstreet.com/swing-trading/

Follow me on twitter or email me at SinghJD1@aol.com

The post Swing Trade Stock of the Week: AAPL appeared first on Bulls on Wall Street.