Chris Wood

Trading stocks based on earnings and technical analysis

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How I Made Over 200% In 8 Months By Trading Earnings Winners Part Time

Originally posted on

When looking around the website, it is clear to me that there are very few people trading earnings winners. This is understandable, given the fact that it’s a secondary strategy for Sykes. Less than 25% of his 275 trades this year have been earnings winners, and only about 12.5% ($20.5k) out of his 158% gains ytd were made by trading these stocks. Based on my observations over the last 5 years as a Tim Sykes subscriber, I must say he is a master day trader, and scalps earnings winners better than anyone I’ve ever seen. This is an incredibly difficult practice to replicate (at least for me), so while I got the idea of trading earnings winners from Tim, I do not follow the same approach in trading earnings plays. It simply does not work for my personality or my schedule. Obviously everyone is different, and no strategy is meant to be replicated...

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The Only Earnings Winner Setup You Need to Know

Q3 2016 earnings season started to ramp up in late July/early August, and the markets have given us a ton of opportunity for profits. I’ve had between 50 and 60 earnings winners on my watchlist for the last week or two, and those of you who follow me on twitter have enjoyed access to my daily w/l and price alerts. I know a lot of my followers have been making some pretty nice $$$ on these runners, and this earnings season is only getting started. If you were able to download and study my price alerts, you could probably tell that most of them are set to trigger at or above the day 1 high.

This is because the breakout over day 1 high setup is by far the most lucrative pattern for swing trading earnings winners, and is perfect for those who are busy with day jobs, classes, kids, etc. The charts below are in different stages of the breakout.. Some have run for several days, while others...

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Q2 2016 Early Trends and Charts

The earnings season of Q2 2016 was unofficially commenced when $AA held its first quarter 2016 earnings conference call on April 15th. The final two weeks of April were home to some pretty great earnings reactions, and with nearly 2,000 companies under $20 reporting earnings in both May and June, my 90 day forecast tells us to expect many more opportunities in the coming weeks.
With a sample size taken from the early quarter action of late April, I was able to observe a few simple patterns that have materialized across the symbol set saved in my watchlist.

Day 1 Breakouts
LRN 5d 5m.png
CLF 3d 5m.png
SONS 3d 5m.png

Day 2 Red to Green
LRN 5d 5m.png
SC 3d 5m.png
KERX 3d 5m.png

SN 10d 5m.png

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Technical Breakout + Earnings + High Short % = Premium Opportunity

Finding a way to trade around one’s day job seems to be a fairly popular challenge with a lot of the newer traders I meet around the internet. If you read my blogs, you’ll notice I post a lot of charts. This is because I believe that leveraging my ability to recognize repeating patterns and pulling the trigger with conviction will synthesize an advantage that plays in my favor.

I recently outlined one of the best long setups for trading around your day job, which essentially amounts to buying earnings winners when they’re breaking out over the day 1 high. Not surprisingly, this pattern held true this week, and because I don’t waste my time trading random stocks, I was prepared.

There are three things all of these setups have in common:

  1. Technical breakout
  2. Recent earnings win
  3. High short %

The volatility in these stocks make them ideal for traders with small accounts (I...

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How I Made $1,100 in the First Two Weeks of February by Trading Part Time

Over the last several weeks, social media has been saturated with people blaming the current market conditions for their lack of profits, or worse, huge losses. I don’t deny that this is a tough market to trade, but that just means you need to be more selective in where you put your money, and act accordingly if a trade starts to go against you.

If you don’t have the availability to sit in front of your trading platform all day and trade like a sniper (due to a day job, class, kids, etc), consider looking at some of the earnings winners I’ve been outlining this quarter. As you can see from my recent trades on $EGO and $GLUU, you can make some good extra money by conservatively swing trading.

Buying channel breakouts on dips has been a great strategy for me this quarter, and has lead to some great post earnings announcement drifts. There is so much fear being spread about the...

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The Best Long Setup for Trading Around Your Day Job

I outlined the best breakout charts for swing traders back in August 2015, then featured a few more charts in Q1 2016 since they’re still relevant and profitable. This pattern is so reliable, Sykes outlined it 6 years ago, and many of his students (including me) still profit from it today:

I only trade part time since I have a day job, and I really don’t mind… in fact I prefer trading part time. I don’t have to be glued to my trading platform, and I can still bring in an extra pay check every month just by staying disciplined, waiting for the best setups, and letting small gains add up.

Here are a few more charts where you can buy and hold for a few days, while riding the waves all the way to the bank.

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Patterns I’ll be Watching For in Q1 2016

Now that we’ve had a week or two of earnings reactions, the patterns have started to reveal themselves. Financial media has been spreading fear about a bear market, while we’re enjoying some serious volatility. When low priced stocks are running 3 - 5 dollars or more in a day, you know this is a great time to trade earnings winners.

Post Earnings Announcement Drift - Low Stress Swing Opportunities


Volatility Spikes - Short Term With Opportunities For Versatile Trading


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A Simple Strategy That Still Works, And is it Ever OK to Short an Earnings Winner?

Because when I get bored on a Saturday night I research earnings strategy, last night I came across this blog post from November, 2014. While it’s easy to both find and trade these stocks, it’s also one of the most consistent and reliable setups I have traded over the last three years.

The overall concept is this:

And Sykes does a great job summarizing the strategy:

“… you don’t have to guess earnings ahead of time (nor should you), you can wait for the news to come out, thus reducing your risk, and simply buy earnings winners the next day AFTER earnings when they break the day high …”

This is the same setup I’ve been talking about recently with stocks like $APIC and $MDXG.
I only got a small piece of the pie, buying the red/green move...

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Earnings Announcements for Tomorrow

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Power Hour Earnings Prep

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