Trades on Our Radar

Welcome to the first weekly update for the Earnings Drift Alert beta test!

I’m excited that you took the step to join us in beta testing this new service and making it great.

Our historical analysis shows the quarterly ritual of earnings season is a gold mine of stock trends — if you know what to look for. Based on our backtests, we know exactly how certain stocks tend to react to a certain type of earnings report, and with that knowledge we’ve created a service that capitalizes on earnings season.

Mainstream investors don’t often see this, or don’t often have the tools required for identifying the trends — but by joining this beta test, you now have access to me and my team, who do.

So with that, welcome!

Now, I’m sure you’re excited to start trading. That’s exactly why I made sure to launch the service right before third-quarter earnings season, which is now under way.

I had two trades on my radar for this week, but they failed to meet my parameters — based on the earnings a company reports and how Wall Street initially reacts to it — which would trigger a trade. I want our trades to meet the exact criteria that will allow us to collect the same type of gains we saw in our backtests, so for now we’re going to stand pat. You may recall me mentioning this trading strategy in the manual, which I posted on the Earnings Drift Alert beta website. In it I cover how this system works and why my parameters are key to a successful trade.

If you’ve yet to read it, you can still do so by clicking here.

Basically, I’ll never trade just to trade. We will only execute the highest quality trades to put us in the best position to profit.

Looking Ahead

While this week’s trade opportunities didn’t pan out, I have two more possible trades coming up:

  1. Nike Inc. — the multinational company that designs, develops and manufactures footwear, apparel, etc. — which is set to announce earnings next Tuesday after the market closes.
  2. Accenture PLC — the global professional services company — which is set to announce earnings next Thursday before the market opens.

If these companies meet our parameters, we’ll be trading one or both in the near future — but they won’t be immediate recommendations. My data tells me to wait a few weeks before trading these guys. See, the timing of our trades is one of the factors we keep in mind to achieve the best possible gains based on our backtest findings — and sometimes that means trading a few weeks after the earnings report is released.

Of course, we’ll keep you updated on the status of these trades along the way.

Well, that’s all for this week. In the meantime, make sure you’ve reviewed the trading manual, and keep an eye on your inbox for a trade within the next few weeks.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert