≈ Avoiding Earnings Has Been Your AAA Card. ≈

Mark from the Cash Flow Vikings here.

Over the last month, nearly everything is working. Bitcoin is up. Ethereum is Up. Small Caps are Up. The Nasdaq is Up. The S&P 500 is up. Tesla seemingly adds the equivalent in market cap of a Wal-Mart every week. Yet in all this “to-the-moon” goodness there has been serious price destruction in a few well-known stock names.

Zillow (Z), Penn National Gaming (PENN), and Peloton (PTON) were three of the hottest stocks in 2020 with truly to-the-moon massive gains last year. Over the last 48 hours, these three past darlings each have also experienced a day where the stock has dropped at least 20% in one trading session. The common theme between the three drops…all three drops happened after earnings. The markets have been roaring but some of the negative earnings reactions have been startling. It is easy to get complacent in strong uptrends thinking that nothing can ever go wrong.

A little reminder that no matter how strong the overall market trend is one should treat earnings with caution and always be aware of when earnings are for your holdings.

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Chart of the Day: Penn National Gaming ($PENN)

Big red candles always put bulls in a foul mood but 20% down red candles can really create headaches. Earnings have been for the most part anticlimactic over the past several earnings seasons but that is hardly the case anymore. Treat trading through earnings with caution.

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Video of the day: Thinkorswim (TOS) Tutorial – How to determine the Market Maker Move (MMM) for earnings gaps

In this video tutorial, Coach Matt Justice takes a look at how to determine the Market Maker Move (MMM; expected move for a stock) for earnings gaps in Thinkorswim (TOS).

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Today’s line up

Traders Lounge 11 PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club Replay

If you missed last night’s episode with Coach Gino Poore on Delta Neutral Trading or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

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