Drift Trader takes the surprise out of earnings surprises.
It's no secret that playing earnings announcements can be a profitable strategy. But a stock's price doesn't always move as expected!
A company may exceed analyst estimates, yet the stock's price may fall off a cliff. Or if the sentiment is already priced in, the stock's trend could stagnate. Simply put, earnings surprises can be surprising if you're only looking at the announcement itself.
Drift Trader detects moves associated with a market phenomenon known as the post-earnings announcement drift (PEAD) and then adds a layer of analysis to find stocks capable of a significant price drift.
No bias here - these aren't hand-picked stocks. Drift Trader only watches stocks that have the potential to see a share price climb in the next days and weeks following an earnings announcement.
So buckle up, begin your test drive, and start riding the drifts!
The INO.com Team
[email protected]
Drift Trader FAQs
Post-earnings announcement drift (PEAD), also known as the earnings momentum effect, is a well-documented market anomaly first studied by Ray Ball and Phillip Brown in the 1960s.
Ball and Brown began analyzing the relationship between earnings surprises and following stock market reactions. They argued that while a stock's price may react to an earnings surprise, the price adjustment doesn't occur right away. It can take days, weeks, or even months for the stock price to adjust. According to their findings, this "drift" in price can produce abnormal returns.
A price drift is a steady and uniform motion of a stock's price in one direction following an earnings announcement. Unlike a jump or a spike, the price shift is a gradual move.
When a stock makes its way to Drift Trader subscribers, it means it could see a solid price move based on our proprietary analysis. Subscribers could buy this stock to try to ride price drift. The tri-colored gauge will show you if the stock has a strong, steady, or weak drift. Once the stock's move begins to wane, subscribers could exit their trade.
Deciding how to follow the drift strength alerts is up to subscribers. However, we think the best price moves occur when the strength is strong to steady (as indicated by the drift gauge).
A stock's price can drift in days, weeks, or even months following a surprise earnings announcement.
Drift Trader helps find the beginning of the drift and alert subscribers when the momentum slows and the move may be over.
Test Drive (FREE)
Thanks to our sponsors, we can offer a limited version of Drift Trader at no cost.
- See new stocks that hit our drift list
- Closely monitor your favorite drift stock
- Access our charting and technical tools
Monthly Subscription ($30/month)
Get the full version of Drift Trader for only $30/month. No long-term commitment. If you decide Drift Trader isn't right for you, cancel your subscription before the next billing cycle, and you won't be charged again. You can even continue to use the free version.
- See every stock that hits our drift list
- Customize your watchlist for personalized alerts
- Access our charting and technical tools
- Get a weekly email update showing your new drifts and watchlist warnings
We track the percentage gain or loss from the time we detect a stock's new drift. That number can be viewed on the top of any chart page.
Please remember that past performance is not indicative of future performance. Truly, the only performance that should matter is your own.
Not quite. Drift Trader looks through the biggest earnings surprises to pick stocks with the most substantial price drift potential. These stocks are not hand-picked by a person but selected by our algorithm.
We are not a brokerage firm, and we do not place trades for our subscribers or manage their money.
We simply help subscribers find stocks with the potential to climb after an earnings announcement based on a well-studied market phenomenon AND our analysis. How you use Drift Trader is up to you.
Launched in March of 1995, INO.com was one of the first websites to provide futures information primarily for the retail trader. Since then, our company has continued to develop technical trading tools, like Drift Trader, for both retail and professional traders.
