Never Loss Trading Top-Line: Earnings Trade

Earnings Movers are shares, which show a high sensitivity to price moves in and out of earnings announcements.

Who produces those moves?

Institutional investors.

Quarterly results are part of a legally required communication to inform shareholders about the progress of a company. With every earnings report, a projection for the futures sales and earnings progress is given and reviewed in at the earnings report of the coming quarter.

Legal documentations are audited by legally approved consulting firms and a prospectus is printed after. This process requires time and leaves enough space for information to reach key market players about 20 days prior to publication of the earnings report to the public.

Meanwhile, many information services provide the dates of earnings reports for every company. Unfortunately, about 30,000 companies report earnings every quarter and by that, it is impossible for the private investor to follow all those dates.

To produce a meaningful watch list, Never Loss Trading put together a compiled list of corporations, which showed a pattern of price moves prior and after earnings reports in the past. 

About 20 days prior and right after their Earnings conference, those companies are on our daily watch list to take advantage of a potential move.

NLT Preferred Earnings Movers have a high trade likelihood and a sound potential SPU-return. The short list we review daily reviews about 70 shares and it would be demanding for our top line students to review this list daily. Hence, we let our scanner run through the earnings watch list, indentifying the ones on a price move, to trade along with it.

The NLT-scanner will put you in the position to identify those companies, which start to make a price move and we choose them for a detailed chart analysis to decide if we want to trade with the signal and price position, we read off the NLT-charts and pick ALTR as example:

ALTR Top-Line Chart

Trading Prior to the Earnings Announcements

Entry:              With the first NLT-Top-Line Signal, in the 20-Day Range, prior to the earnings announcement.

Exit:                 Confident, in expecting a bigger price move, we exit 75% of our position at 2-SPU and trail the remaining 25% with the red NLT-Double-Decker-Line. Latest exit, the day prior to the Announcement or position protection.

Stop:                Above the high/low of the trade initiating candle.

Trading after the Earnings Announcement

Entry:              With the first NLT-Top-Line Signal, after the Earnings Announcement. 

Exit:                 Confident, in expecting a bigger price move, we exit 50% of our position at 1-SPU and 25% at 2-SPU, trailing the remaining order with the red NLT-Double-Decker-Line.

Stop:                Above the high/low of the trade initiating candle and trailed.

ALTR, Earnings Mover

The price development showed, how we can take advantage to trade what we see and not what we hear in the news:

1. When a trade signal occurs in the 20-day range, we take it. In case another opposite trade signal occurs and takes our stop out, we enter in the direction with the new signal (assuming a misinterpretation of internal data releases).
2. When a trade signal occurs in the 5-days after the earnings announcement, we take it.
3. We trade for 2-SPU’s, with the above spelled out concept.
4. The correlation to the overall market is important. Shares like ALTR, which shows a very tight development with the S&P 500, cannot be traded independently. We need to consider the overall market development and SPY price move to make the right decision. It is more easy to trade shares, with an independent price development.

By the NLT-scanner, you will be in the position to daily review our pre-defined watch list, which you can alter and update. All companies, we put on the watch list, are predictable movers on NLT-signals and with that they will provide multiple all year entries and especially around earnings.

In our example and this actually happens daily, we find stocks with signals to the up- and others to the downside at one and the same day. This builds another strength of the NLT Top-Line concept. In case we are in such trades and a major market move happens the next day, dragging all shares the one or the other way, we will always be able to participate and produce earnings, in particulare when we trade options.

The NLT Top-Line concept, with its scanners and watch lists, puts you in the position to daily pick strong price movers for your advantage. It is the completes concept on the market combining:

1. Clear cut trade entry and exit concepts.
2. Watch lists and scanners that can be operated individually.
3. Trading plans with various trading methods to participate in the price move of any share.

To install all this on your machine, we need to go through individual programming and will do this for you on your computer. Hence, our capacities are limited and we appreciate your fast decision to come on with the program so you can start to participate in market opportunities you did not dream off to discover.

For more details, send you contact information to: contact@NeverLossTrading.com

We take pride in your success.

Trade what you see and see what you trade!

Never Loss Trading