Identifying Opportunity in Chop
When the market is choppy, it can be a bit frustrating for those of us traders who love identifying directional moves. But, as we know, the market chops around 80% of the time and spends the other 20% of the time making big moves.
It’s our job as traders to identify those moments of consolidation, where energy is building up and likely to break out. This is why we use my favorite trading indicator, known as the squeeze.
Earnings, as a Catalyst
I identified a few squeezes when I joined David Keller at Stockcharts on Tuesday. I especially like squeezes on hot stocks going into earnings.
This is because the compression of the squeeze demonstrates energy build-up, and earnings are a catalyst. This catalyst is what often causes the momentum to break out.
Walmart, and Target were two stocks I identified for earnings opportunities. I was looking for a bullish move in Walmart, and a bearish move in Target.
Check out the segment below as we discussed this, and more!
Even though earnings season is winding down, many notable companies are still reporting, coming up soon.
Friday, May 19th
John Deere (DE)
Monday, May 22nd
Zoom Inc. (ZM)
Tuesday, May 23rd
Dick’s Sporting Goods (DKS)
Palo Alto Networks (PANW)
Wednesday, May 24th
Thursday, May 25th
Best Buy (BBY)
Ulta Beauty (ULTA)
Which tickers are you most interested in? There will be more opportunities next week!
As for me, I’ll be on vacation with my family, but as always, you can find me on Twitter @traderdanielle.