Friday, February 20, 2015

Power Earnings Gaps

Hi folks,

I wanted to share with you all a specific watchlist which i track closely in my daily routine. I call it the "Power Earnings Gappers"(PEG) watchlist. The idea is pretty simple: I simply wait till AFTER a stock(company) reports their earnings and watch it closely and see how it closes on that day. If i see a STRONG candle on humongous volume on the close, i automatically add it to my "Power Earnings Gappers"(PEG) watchlist.  This watchlist will essentially hold only the "winners". Stocks that reported outstanding earnings and the stock reacted very positively. Stocks that act well after earnings reports have a reliable tendency to keep running higher.

Some of these names end up as either "Trade Alerts" for ART OF TRADING members and/or actual setups which i email to AoT members as well. Some people might say, these stocks are 'too extended and hard to buy them now'; But I do not mind chasing stocks that reported great earnings and are now showing strong technical qualities as the chance of these stocks running even higher is very strong. Sometimes, you have to pay up for a quality name that has proven itself.

Here are a few examples I've added to this list recently.

ART OF TRADING  Member Reviews : HERE

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