One of the best way to take advantage of the earnings season is to keep track of the stocks that reacted well immediately after their earnings report. The stocks immediate reaction should be one that can't be construe any other way than the positive. Setting a minimum gap up requirement of say 4% or 6% will narrow down your universe dramatically and show you only the stocks that might fall under P.E.A.D.
- Go to Finviz.com
- Click on SCREENER
- Put in these filters; Earnings date previous 5 days, average volume >100k, Price >$2, Price above 200 day moving average, and price above 50 day moving average. This will give you 216 names that have reported in the last 5 days.
- What you want to do now is click on charts and jot down the names that had a recent gap up, for example $AAOI, $ABMD.
- You then want to keep track of these stocks and wait for them to set up properly, in the meantime you can also read the earnings press release to see if you really have something special like $MDR.
- Rinse and repeat daily.
One recent name that stands out to me is $N.