Pre-Earnings Momentum Setups Right Now…

Hey traders!

The Nasdaq is in the midst of a fantastic move off of the October lows. It’s broken through quite a bit of resistance, which means the likelihood of the move continuing is better than not.

What is great about this move is that as the market has exploded higher the put/call ratio only initially dipped a bit, but then reversed and continued higher! This means that traders are shorting into the rally, which, of course, can propel it even higher if and when they are proven wrong.

The Microsoft Signal

I see a few reasons it may continue, one of them being Microsoft (MSFT), which is almost at a new, all-time high! It’s typically for MSFT to rally post-earnings, but the move was a little funky this quarter since it gapped up post-earnings, pulled back, and then took off. I prefer a breakaway gap just because this is a robust and bullish signal, but I’ll take it! It did have a daily squeeze.

Microsoft is so close to kissing that new, all-time high. That’s my target and after that? It depends on whether the momentum continues or not. Either way, of course, I am still holding my stock. I’d bet on a move up to $375 on this break, though.

Pre-Earnings Momentum

When the Nasdaq is strong, and stocks like Microsoft are rallying post-earnings, that means we can continue to look for pre-earnings momentum setups. It may seem like earnings season is wrapping up, but, there are still plenty of tickers coming!

Check out my watchlist below, along with the top tickers that have had the biggest pre-earnings moves over the last year:

 

On my list include Broadcom (AVGO), MongoDB (MDB), Crowdstrike (CRWD), Zscaler (ZS), and more.

Check out this gorgeous chart pattern on the Broadcom daily chart:

Look at that daily squeeze, positive pre-earnings average, entrance into the Hot Zone, and more.

Which stocks do you like for pre-earnings runs? Let me know in the comments below!

Up Next...

Managing Butterfly Spreads & Taking Profits: DKNG

Hey traders! I’ve been busy making videos after taking your requests! I’ve created a full series on how I manage spreads and butterflies, which you can find on my Youtube channel.  The latest video in the series is an overview of a bullish fly I placed in the Simpler Central room, along with a new … Read more

Read More

Top 5 Charts to Watch This Week…

Hey Traders! What are you trading this week? Check out my Top 5 charts in the video review below… In this market, it’s most important to focus on spots with high liquidity, major setups, and options action that tells you where to look for targets. What are you trading? Let me know below!

Read More

Taking Profits: Managing a Butterfly when Price Explodes

Hey traders! Nvidia earnings is out, and the stock continues exploding. On this ticker, I made two different small lotto bets. One was a bearish trade, in case the ticker had a bad reaction, and the other was a bullish bet. While I lost money on the bear side, the bull side made money. The … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now
all-as-seen-on-logos