Earnings Day has potential to move a stock big in either direction – yet few traders know exactly when to get in on a stock after an earnings beat.
That’s why Lead Technical Tactician of Monument Traders Alliance Nate Bear is letting readers in on a special strategy for trading earnings.
He calls it “Aftershocks” trading, and it’s designed to target triple-digit gains.
To get more info on the strategy, click here.
– Nicole Labra, Senior Managing Editor
Most investors believe an 8%-10% return per year is the gold standard…
But what if Wall Street’s smartest traders were targeting 100%, 200%, or even 300% gain – before the opening bell?
That’s the number most investors are taught is a “good ROI” when it comes to trading.
The S&P 500, a benchmark for the U.S. stock market, has averaged around 10% return per year since the late 1920s.
Institutional investors play by a different set of rules. While most traders aim for modest returns, Wall Street’s elite target explosive moves – often before the market even opens.
Well… after years of trading, I’ve discovered a phenomenon that happens on Wall Street the morning before the opening bell that offers potential for these triple-digit gains.
In fact, Harvard and Duke University recently conducted a joint study detailing how it works.
What the Research Shows
The study found that stocks experiencing earnings beats don’t just spike once – they often sustain momentum for weeks or even months as institutional investors adjust their positions.
This is because institutional investors and market makers need time to adjust their positions, creating what traders call Aftershocks at the opening bell.
Even the Federal Reserve and the Securities and Exchange Commission (SEC) analyzed how these earnings surprises impact stock prices.
Their findings confirm that markets tend to undervalue the momentum of a strong earnings beat, leading to sustained moves well beyond what most investors expect.
This undervalued tendency has proven to be an effective time to get in on a stock according to Wall Street.
Whenever a catalyst event happens… say a company reports earnings – there’s often the chance Wall Street overreacts to its stock price.
The stock might make a big move up – or a big move down – or stay flat.
Nobody knows.
Yet, smart money doesn’t try to guess where that move will be.
Instead, it waits until AFTER the earnings dust settles before making its move.
How Wall Street Conducts Aftershocks Trades
Hedge funds don’t gamble on earnings – they react strategically.
Instead of buying before an announcement, they capitalize on the post-earnings momentum that follows.
They don’t just trade earnings before the announcement – they wait for the next morning’s aftershock and ride the momentum to rapid gains.
Where you Come in
Here’s the good news…
You don’t need millions of dollars or a Wall Street background to take advantage of Aftershocks.
By following a simple three-step strategy, everyday people can capitalize just like the pros.
Here are the three steps…
- Identify earnings winners. Look for companies that crushed expectations and had significant post-earnings moves.
- Compare the move to market expectations. If the stock moves at least 1.5X what Wall Street predicted, it’s a prime candidate for an Aftershock.
- Trade the opening bell aftershock. When the market opens, enter the trade and ride the momentum for minutes or hours, targeting triple-digit returns.
You see… the financial media focuses on pre-earnings speculation, but the real money often moves after the announcement.
Top institutions – including Harvard and the Federal Reserve – have studied this phenomenon. Yet most retail investors never take advantage of it.
Yet most everyday investors never hear about it.
Now that you know, the next step is taking action.
Want to see this strategy in action?
Watch as I break down a real-life trade on Applovin (Nasdaq: APP) that delivered explosive results.
Click here to see the setup before the next earnings season begins.
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