October 20, 2011 at 6:43 pm | | Comments 2

Post-Earnings Day Trading Profits

Earnings season brings with it a host of opportunities.  It includes the potential for new leadership to emerge once it’s all said and done, but in the heat of it, the price action offers some excellent chances to participate in emotional short-term moves via day trades.

Traders expect big gaps during earnings season, and quite a few roll the dice ahead of it in hopes of receiving a market gift.  Fortunately though, a trader need not participate in the gap itself to do well.

The post-earnings gap is a regular occurrence for most stocks, although some make a larger move than others.  The outlier moves are the ones to watch closest, as they can signal either the beginning of a new move, or an overreaction with reversal potential.

Thursday’s move in PLCM was an example of the latter, as a 30% opening gap to the downside proved to be a bit much.  The stock made a huge run higher intraday, although as I’ll show in the video, catching the entire run wasn’t necessary.  Instead, grabbing pieces here and there can prove quite lucrative when there’s heavy volume and high emotion present.

In this video, I’ll share with you how I profited in the stock despite feeling like I missed both the big moves (the gap and most of the upside reversal).  The fact is, when a stock is in play like PLCM was, there’s opportunity for several kinds of plays along the way.  And the exciting part is that this happens nearly every day during earnings season, 4 times per year.

Be sure to watch full-screen on the 720p setting for the HD version of the video.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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  1. good video. What is the best way to monitor which stocks have had big gaps down? How do I know a big gap down has occurred, is another way to ask the question? I am just a guy at home with a computer. Is there someway to keep track of the stocks that gap down?

  2. Thank you, glad you enjoyed it! Most trading platforms will have a ‘biggest movers’ type of filter which you can view at the opening bell, or you can use charting software to achieve the same thing…just sort them by net gain to see the biggest gaps up or down.

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