Day 2 Morning Breakout

One of the keys to consistent profitability is the ability to recognize repeating patterns. Because the market trends are always changing, one must adapt, and have the conviction to pull the trigger on new, developing patterns.

One trend I have noticed recently while watching earnings winners is that they are getting stuffed on their day one breakouts, then breakout big in the morning of day 2. This pattern isn’t new, but I haven’t really seen it since last summer. Here’s a good video that explains the setup, and here are a few recent examples:
BDBD 5d 5m.png
CZR 2d 5m.png


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Understanding the Post Earnings Announcement Drift with Examples

By now we’re all familiar with a stock’s ability to generate abnormal returns in the penny stock niche. If you have been following my blog or trades over the past few years, you know my earnings strategy was derived from lessons learned... Continue →