In my last ChartWatchers article, I talked about ways to take advantage of the fantastic profit season we just experienced. So many companies got solid numbers that pushed the market to an all-time high.
I am referring to my article from two weeks ago because it is a great lesson in patience. In fact, I include the same AMD graphic I showed in this article.
You can see that I have pointed out several possible entry levels in any setback. In this case, averaging and taking a 1/3 position at each level shown would have resulted in a combined price close to $ 103. That’s well below the maximum price after earnings of $ 122.49, which is the price someone would have been able to pay if they pursued the shares after the earnings.
AMD is just one example, as there were a lot of stocks that exceeded the expectations of the top line and the bottom line and were more guided, which have similar graphics and also require patience. It comes to mind Snapchat (SNAP).
You can see in the chart above that SNAP rose sharply after the company reported its numbers. And, after that, there was a very nice opportunity to buy it for a good trade. In fact, it has also created another good opportunity.
The point is, there are so many great opportunities that come up in those actions that exceed all expectations, especially if you are willing to be patient. It helps if you have a list to refer to, that is, to find potential business candidates, which we provide to our members on a regular basis. It’s called our “strong earnings charts list,” which currently includes nearly 600 charts on companies that have exceeded Wall Street consensus estimates in terms of revenue and earnings, are liquid, and have solid technical charts. This is a POWERFUL tool and if you want to see a sample, click here to sign up for our FREE .T EarningsBeats summary. The list of samples will appear in the newsletter on Monday morning.
Earnings season is a time to see which companies have a high financial return. Reducing companies that exceed all expectations should be an integral part of your trading platform.
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