Companies whose stock price spikes suddenly on large volume due to the release of an earnings report provide you an opportunity to trade a stock perceived by Wall Street to be a winner.
Bethesda, MD (PRWEB) May 08, 2012
Invested Central, a Bethesda, Maryland based financial education company, is excited to announce the publication of a new white paper discussing How to Trade Stocks after Earning's Season, written by Invested Central Chief Market Strategist Tom Bowley
Publicly traded companies announce earnings on a quarterly basis. In his paper, Bowley discusses how to use a combination of technical analysis and the fundamental data provided during earnings to uncover the most promising stock trade candidates.
"Companies whose stock price spikes suddenly on large volume due to the release of an earnings report provides you an opportunity to trade a stock perceived by Wall Street to be a winner", says Bowley. "While we never have any guarantees in the stock market, I do find that these types of companies tend to outperform over the next several weeks, months and quarters."
Bowley further breaks these candidates into four categories:
Bottoming Stocks - This group tends to include companies that have been underperforming the market for a period of time, but are showing technical signs of bottoming PRIOR to a key earnings report that CONFIRMS the bottom.
Trending Stocks - This group includes companies that have moved higher after solid earnings reports, but were already in nice technical patterns before the current earnings report was released.
Aggressive Stocks - Generally, the stocks in this category are either small cap stocks or micro cap stocks, but still with significant average daily volume. Many stocks in this category fall into the pharmaceutical or biopharma space and could be moving on high volume for reasons unrelated to earnings.
Low Beta Stocks - Otherwise known as low risk stocks. You can find some low risk trades amongst the Dow Jones components, as well as consumer staples and utilities sectors.
With increased market volatility due to the worldwide financial crisis, Invested Central has seen a dramatic growth in interest for stock market education over the last few years. By shifting their focus towards guidance and education, Invested Central has positioned itself as a leader in the field of online technical analysis training.
"This paper is just another piece in our ever expanding stock market library", says John Hopkins, President and CEO of Invested Central. "Our mission is to help educate traders around the world. We continue to provide great educational material like Tom's latest paper, and by doing so we continue to achieve our mission."
About Invested Central - Invested Central provides education and stock market guidance to individuals who have taken trading into their own hands. They provide pertinent information to their members during the trading day, including market updates, stock ideas, and conduct live member only chats while the market is open to help enhance trading success. Invested Central is in their eighth year of business and continues to serve members who have been part of the Invested Central community since its inception. You can learn more about Invested Central by visiting their website at http://www.investedcentral.com.