September 14th, 2026
Happy Monday, everyone!
When Monday comes along, I always like to do a full market review and look for new setups! I’m looking for tickers that have a strong confluence between technical and fundamental factors that earn multiple stars in my Five Star scoring system. Let’s talk about one of the cleaner setups I’m eyeing right now in NEO SetupNeoGenomics (NEO).
The stock has already shown it can gap and run after earnings, the fundamental story is improving in plain sight, and the chart is lining up another potential catalyst window into late October. I’m going to walk through both the technical picture and the business so you can see why I’m long here, and what I’m looking for going forward.
The Technical Story: My Earnings Hot Zone Chart
Look at the last two earnings reports. After the April 28 Q1 print, NEO gapped 13.6%. After the July 28 Q2 print, it gapped 15.4%. Those are back-to-back breakaway gaps followed by post-earnings momentum — exactly the kind of price action I love to see going into the next quarter’s earnings report.
The Five Star earnings stats back it up: 8-for-8 quarters in the history window, 7-for-7 beats with zero misses on the recent streak, and a green trend reading. The stock is also in a squeeze, with earnings expected around October 27 (not yet confirmed).
Add a short float in the mid-teens, and you have the ingredients I look for: a name that has already proven it can explode higher on good numbers, compressed volatility, a defined catalyst, and a decent amount of fuel from shorts if it gaps again.
Hot Zone average moves have been modest, but oftentimes I will find tickers I refer to as Fundamental Shifts, which are tickers that have changed course recently and, for that reason, won’t have a lengthy history of pre-earnings momentum rallies. However, the combination of two large post-earnings gaps, the beat streak, the squeeze, upcoming earnings, and the short interest is why this is on my radar and qualifies the ticker for a Fundamental Shift setup.
The Fundamental Story: How the Company Makes Money
NeoGenomics runs cancer-testing labs. Hospitals and doctors send them tissue and blood samples. The company looks for genetic mutations and other markers so oncologists can diagnose the cancer more precisely, pick the right drugs, and later check whether the cancer is coming back or responding to treatment.
They get paid every time they run those tests. Most of the revenue comes from everyday clinical testing billed to hospitals, Medicare, and insurers. A growing slice is next-generation sequencing (looking at many genes at once), which usually pays more per test. They also do some work for drug companies on trials and companion diagnostics.
Recent improvements: revenue is growing in the low double digits, they raised full-year guidance after Q2, and they just received expanded Medicare coverage for their RaDaR ST test, which monitors whether cancer is lingering after treatment. That’s the kind of higher-value, stickier testing that can lift both volume and price over time.
Conclusion
Want a video breakdown? Check it out below…
I’m trading NEO in the Mastering the Trade room. Because it isn’t optionable, for the structure I want, I’m buying shares. The technical setup, plus a business that is actually getting better on the numbers, is why I like it here. As always, size it properly and respect the risk — earnings can still disappoint. I’ll keep you posted on how the position develops.
