It's been a very exciting time for the bulls, with the NASDAQ and S&P hitting all-time highs this week. In fact, for those who have been skeptical and sat out the move off of the March 21 bottom, this has been painful to watch, with the NASDAQ rising over 70% in just 5 months. That ranks right up there with one of the most amazing turnarounds of all time. The good news for those who have been left behind, as well as those who are looking for fresh opportunities, is that you will be able to profit on those companies that recently reported stellar earnings and pull back to key support levels. As an example, take a look at the chart of Target (TGT) a company that smashed all earnings expectations when they reported their numbers last week.
Would it have been awesome to be a shareholder into the earnings report? You bet! After all, the stock rose a nifty 13% after earnings were released and has gained as much as 28% in just three weeks. But for those not fortunate enough to have owned the stock, there's a good chance you will get another chance to buy it cheaper. For example, I'm willing to bet that at some point the stock will minimally pull back to the bottom of the gap near $146 on August 19. And, should the stock fall below that level, perhaps another entry level near the 20-day moving average currently near $136.
There will be many other stocks that pull back to key support levels, and the ones I will be watching will be those that easily beat earnings expectations, especially those that raised guidance as well. Why? Because these are the most sought after stocks; traders like winners. How can you find these types of candidates? At EarningsBeats.com, we scan for stocks that beat earnings expectations - both the top and bottom line - and have promising charts. Those that meet our standards are then added to our Strong Earnings ChartList (SECL). In fact, our SECL currently has 483 stocks - the most we've ever had - that could become high reward-to-risk trading candidates. And, even better, those who have a StockCharts.com Extra level membership or higher can download our SECL, which allows them to scan for the best trading candidates. POWERFUL! In fact, our Chief Market Strategist Tom Bowley will be conducting a webinar this Monday, August 24 at 4:30 pm Eastern where he will be demonstrating the power of the SECL and how it can be used with StockCharts.com scanning tools for superior results. This will be open free of charge to the EarningsBeats and StockCharts communities and you can use this link to join us. The room will open at 4:00 pm Eastern. If you are currently NOT receiving our free EarningsBeats Digest that comes out every M, W and F, just click here to sign up and we will send you a reminder of the event on Monday. You don't want to miss this one!
At your service,