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: