How To Successfully Play The Earnings Game - And Win 95% Of The Time

Posted on by The INO.com Team

Today I'm going to tackle something completely different and see if MarketClub's Trade Triangle technology can help you anticipate good or bad earnings before they are announced.

I randomly selected 20 stocks that have recently reported earnings and took a look to see how the Trade Triangles were positioned in each of those stocks before each company announced their earnings. Again, I only used the market-proven Trade Triangle technology to see whether you should be long or short a stock, or just be on the sidelines.

The results even surprised me, out of the 20 stocks that I picked, you would have been in positions in 12 of them. 11 were outright winners and there was one loser. You would have taken a position in the market on the close before the company reported its earnings. You would then exit the position on the close of business the next day.

So how did the Trade Triangles do with the other eight stocks?

The remaining eight stocks were on the sidelines. Being on the sidelines helped avoid five losing trades, meaning the market did not live up to its earnings. However on the other side of the coin, you missed out on three gains by being on the sidelines. When you analyze the missed gains and the avoided losses, you still come out ahead by having a position on the sidelines.

Here is a list of all the stocks and the dates. You can simply look at the chart and check the results for yourself.

Winning - Long Positions
Sony Corporation (NYSE:SNE) - 2/4 - (+10.99%)
Whirlpool Corp. (NYSE:WHR)- 2/4 - (+6.76%)
Apple Inc. (NASDAQ:AAPL) - 1/27 - (+6.03%)
Linkedin Corporation (NYSE:LNKD) - 2/5 - (+10.77%)
Marathon Petroleum Corporation (NYSE:MPC) - 2/4 - (+.44%)
Alcatel-Lucent (NYSE:ALU) - 2/6 - (+13.46%)
The Boeing Company (NYSE:BA) - 1/28 - (+5.63%)

Winning - Short Positions
Keurig Green Mountain, Inc. (NASDAQ:GMCR) - 2/4 - (-4.97%)
GoPro Inc. (NASDAQ:GPRO) - 2/5 - (-13.46%)
Astrazeneca PLC (NYSE:AZN) - 2/5 - (-2.57%)
Freeport-McMoRan Inc. (NYSE:FCX) - 1/27 - (-6.16%)

Losing - Position
Chipotle Mexican Grill Inc. (NYSE:CMG) - 2/3 - (-6.8%)

Neutral Sideline Position - Avoided Losses
Gilead Sciences Inc. (NASDAQ:GILD) - 2/3 - (-8.16%)
Pandora Media Inc.(NYSE:P) - 2/5 - (-17.17%)
Ralph Lauren Corporation (NYSE:RL) - 2/4- (-18.12%)
Merck & Co. Inc.(NYSE:MRK) - 2/4 - (-3.25%)
The Procter & Gamble Company (NYSE:PG) - 1/27 - (-3.46%)

Neutral Sideline Position - Missed Gains
Twitter Inc. (NYSE:TWTR) - 2/5 - (+16.21%)
General Motors Company (NYSE:GM) - 2/4 - (+5.44%)
Hasbro Inc. (NYSE:HAS) - 2/9 - (+7.10%)

Caveat Emptor

Now let me just say one thing before you go out and mortgage the house and just trade this one way. Out of the 12 stocks that had current positions, the Trade Triangles were successful 95% of the time in these trades, that does not mean in the future the same scenario will take place next earnings season and you will be successful 95% of the time. Losses can and will occur in the future using this strategy or any strategy.

Have a great trading day and check out those Trade Triangles.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

2 thoughts on “How To Successfully Play The Earnings Game - And Win 95% Of The Time”

  1. Caveat emptor indeed, anyone who deludes themselves into thinking that 20 observations is statistically significant is a muppet

  2. Yesterday you had a video about LOCK going up.
    You had all triangles in green.
    I bought LOCK 200 shares yesterday before earning announcement.
    But today LOCK plummet 10%.

    You did not convince me that this system of your works.
    Respectfully yours

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