Business

Earnings Whipsaws Drive Volatility (TRIP & MNST Preview)

This is a week full of profits.

There are 154 companies in the S&P 500, over 30%, that are set to report in the next five days.

If you thought last week’s whips were interesting, they’re not over yet.

One thing is for sure: the markets are reacting strongly to moves in profits. It started with Netflix Ltd. (NASDAQ: NFLX) Two weeks ago – Blue Chip stock fell 40% of earnings. Last week, a major motivator was Teladoc Health Inc. (Symbol: TDOC), Which also fell by 40%.

Then there are the bell companies that grab everyone’s attention, like that of Microsoft (NASDAQ: MSFT) Strong report or from Amazon.com Inc. (NASDAQ: AMZN) And of Apple Inc. (NASDAQ: AAPLWeak reports. The market continues to change daily with important news.

With 154 of the largest and most liquid companies reported this week, you can expect more from the same thing – a busy market.

This week, with all the cuts and big moves we see in the open air, I focus more on what to expect next.

These stocks are on a short list that I follow with a A unique profit-making strategy in which I trade. I’m looking for two things that will happen:

  • I want to see these companies beat expectations by at least 5%.
  • I’m looking for stocks to jump at least 5% while on the move.

If that happens, it gives us a strong indication that stocks are going to continue to rise over the next four weeks.

This is a basic approach that many tend to ignore. But a big one-day move in profits is often a sign of more profits along the way.

And this is especially true with these two.

Let’s take a look…

Edge spaces summarize

God Edge spaces Stocks last week were on trend just along with this piece in the market for the most part.

Matador Resources Co. (Symbol: MTDR) Decreased in profits, while falling lower than the upward trend in price.

But it can end up being traded similarly to Lantheus Holdings Inc. (NASDAQ: LNTH). Shares rose after markets fell earlier this week, but earnings last Friday caused the stock to grow more than 5%. This brought the stock back into the trading range I highlighted last week and could signal further gains going forward.

Edge spaces Inventory # 1: TripAdvisor Inc. (NASDAQ: Trip)

Earnings Announcement Date: Wednesday, after closing.

expectations: Earnings at a loss of $ 0.08 per share. Revenue of $ 248 million.

Average Analyst Rating: to hold.

I’ve been following TripAdvisor since it’s released in 2011. It tends to have some wild double-digit moves on earnings day.

And I found more consistent gains by waiting until after the announcement and jumping in. But only if it hurts come to increase my profits.

Over the past decade, the stock of the online travel company has reached the signal of my earnings increase five times. And every time except one, the stock continued to rise.

This gives this signal a winning rate of 80% in the last decade.

TRIP’s crowded trading range

You can see that the stock is crystallizing a little before the gains. Fall resistance in red and sideways support in green shuts inward.

I cut the short baptism in March with its green support line. But keeping the line there only puts pressure on the stock to go down.

Profits tend to be trend changes, and TRIP is already on the verge of breaking upwards.

I will watch the stock this week, looking for my earnings signal of a rate of 5% or better and a price shift of 5% or more. Then I know to jump in and buy calls.

Edge spaces Inventory No. 2: Monster Beverage Corp. (NASDAQ: MNST)

Earnings Announcement Date: Thursday, after closing.

expectations: Earnings of $ 0.61 per share. Revenue of $ 1.42 billion.

Average Analyst Rating: Better performance.

Monster Beverage, the energy drink giant, has reached the 12-fold increase in my earnings since 2006. It has risen 70% of the time after that signal.

You will not find this kind of consistency before a report, no matter what you are following.

But, by looking for a jump of 5% or more in a stock and an earnings rate of more than 5%, you have just that.

This stock has been in lateral movements for more than a year. Take a look.

MNST’s Choppy pattern

MNST Monster Stock Chart

Shares are barely higher than where they were at the end of 2020, which is only thanks to the March low.

Based on my “profit radar” tool, the relative rotation graph, the stock completed the move higher. The stocks sit in the leading quarter in the chart, marked by the green candlesticks.

The next likely move is lower for MNST, and earnings may jump this week.

I will not gamble on the big day itself.

Instead I will wait patiently to see if it can surprise the market with a profit rate and send the stock higher away.

If we accept that, I’ll be bullied about the stock.


knock Here join True Options Masters.

Earnings Whipsaws Drive Volatility (TRIP & MNST Preview) Source link Earnings Whipsaws Drive Volatility (TRIP & MNST Preview)

Related Articles

Back to top button