Friday, September 11, 2026
Hi Traders,
Today, I wanted to take a look at a ticker that has recently experienced a phenomenal move: Dell. This is because trading and investing are all about patterns. Recognizing those patterns and repeating those patterns is how we continually improve our edge. While I was bullish on DELL with a price target between $525 and $550, even my highest expectations were exceeded when this ticker hit $567 today. I previously traded the rally going into DELL earnings in the Mastering the Trade room, and noted this setup in our August 5th edition. At this point, the trade is in its third phase: the post-earnings move. There is a specific, repeatable pattern I look for. Once you know the pieces, you can scan for them in other names.
Let’s discuss my Five Star points of confluence…
- Fundamental Shift: one earnings report that changes what the business is, not just what it earned this quarter. This is displayed by the profound change in pattern. This happened last November, when the stock went from trading lower for 4 consecutive quarters post-earnings to gapping up 6%. You’ll also notice this occurred due to strong EPS beats and rising EPS.
- Pre-Earnings Momentum: History in the Hot Zone that turned green (demonstrating a 5%+ move before earnings), indicating new buyer interest pre-earnings.
- Technical setup: A bullish setup inside the Hot Zone before the numbers, including rising averages, relative strength, and a squeeze coiling before the number.
- Treakaway Gap: The first pop is not the whole move. Follow-through after the gap is the tell that institutions are still accumulating.
- Squeeze: The momentum move that exploded using the news as the catalyst for a breakout, carrying the price into new highs.
When those five things stack up, I treat the name as both a post-earnings trade and a longer-term buy. DELL has now shown 3 quarters of consistency in this new, bullish Five Star Pattern.
The Latest DELL Post-Earnings Momentum Move
Take a look at the recent post-earnings move in Dell. This stock initially gapped up 8.7%, but by the end of the trading session, it was up almost 15%. The daily squeeze ended up firing long on this fundamental catalyst, sending the stock to new all-time highs.
When zoomed in, of course, the chart looks amazing. But let’s go back in time. It wasn’t always like this. This is why this ticker fits the pattern I call a Fundamental Shift.
The Fundamental Shift: The Long-Term View
It’s important to recognize tickers like this when the shift begins, because this is really where there is money to be made. When investors and traders first notice a major shift in patterns, momentum begins to take off. Volume comes in. Earnings improve, likely substantially to cause this kind of fundamental shift. This is the moment in time when stocks take off.
This ticker traded around $125 last fall, and today it closed at $567.29. Who doesn’t love a fundamental shift?
While this one is already off, I’m always on the lookout for new tickers with the same pattern. Now you know exactly what I’m looking for!
