News catalyst can often trigger big moves in stocks. Earnings is the number one stock mover. Earnings are released after hours and pre market.
A massive earnings surprise on a stock with multi month base can lead to big rallies lasting weeks or months.
Focusing on "massive Earnings acceleration " will help you find 5 to 20 big ideas in a year that can make 50% to 1000% move.
In order to find such massive acceleration you need a structured approach to track after hours earnings news.
It should be efficient process which should only take 15 minutes...
How many of you would want to spend daily 15 minutes to find potential 50% to 100% move????
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.
- WSJ post market winners https://wsj.com/mdc/public/page/2_3023-latetrading2-latetrading.html
- Earnings whisper calendar https://www.earningswhispers.com/calendar
- Marketwatch https://goo.gl/shkck
- Zacks Earnings : https://www.zacks.com/earnings/earnings-calendar
- Earnings Whisper email summary : you need to sign up for this . it is free
A blowout earnings stock will not be missed if you do this daily.
Besides earnings news other news can also move stocks , but earnings will give you most bang for bucks for your 15 minutes.
Create a watch list based on after hours reaction to earnings
What to look for in a good Episodic Pivots or NTRT or MTRT Candidates
MAGNA5
MA massive earnings acceleration or massive sales acceleration or massive earnings surprise. Massive = greater than 100% plus with EPS growth 100% plus growth on meaningful terms. 5 cents becoming 20 cents not 1 cents becoming 4 cents. 10 million revenue becoming 200 million not 10 million becoming 20 million
G gap up on earnings day of at least 4 % plus in after hours or pre market with at least 100k volume
N neglect or base of few months to years. low fund ownership
A sales acceleration of 25% plus preferable. Earnings growth without corresponding sales growth is questionable. But in turnaround situation this condition can be ignored
5 Short interest ratio or days short greater than 5 or 5 days
Entering and exiting NTRT trades
Enter after hours if you have high risk tolerance
Enter Pre market again risky as sometime the moves fade
Enter at open with 1 dollar stop
Enter after 15 minutes less risky but you might miss some gains.
Exit on trailing stops. I trail by 1 dollar and then 50 cents as stocks moves in my favor
Many of these moves fade later after first 1 hour or 2 hours
Some move continue for days.
I go with day trade mindset in these unless my research indicates it might be multi day move.
