Look for stocks with big catalyst everyday (Episodic Pivots). You may not find them everyday, but once in a while they show up and just few of these big trades can make your year or sometime can change your life.
In order to find big winners you need a daily process that you follow to find them. If you follow the process day in and day out , luck will favor you and you will not miss a big opportunity.
Episodic Pivots is a very specific pattern post earnings that shows up on stocks with years of neglect. It is a very powerful pattern which results in stock going up 100 to 500% in few weeks or months , if they are small caps.
Episodic Pivots is not limited to earnings only. Many other news catalyst can lead to big moves. In drugs and biotech stocks news of drug trial results is EP catalyst. New orders, govt policy changes, Redditt Pumps, shortages, calamities, management change , etc can be other EP
Best Episodic Pivots are on low priced stocks with months or years of neglect and that have very low volume leading in to EP. The catalyst leads to buying frenzy and then it goes vertical. If you have small account focus on these kind of lower capitalization stocks.
When looking for EP catalyst always look for situation that is likely to result in explosive move in short period of time. During peak earnings season there is always a temptation to look at every earnings, many of them are not real game changers.
Look for a game changing earnings surprise announced after hours or before market open. For this look at pre market gainers and last night after close gainers. Set up a bullet proof process to track all of these. I have process for this and do it daily.
Best EP have very little mutual fund sponsorship. Best ones have less than 50 funds owners on EP days. Typically less than 300 fund is good for explosive moves.
Funds buy based on such news catalyst and you will see in few months fund ownership will explode. Your objective is to buy before funds buy on earnings day.
Once you identify a good EP candidate in pre or post market buying it early without waiting for volume or price confirmation is key. I buy either in after hours or with Market On open order.
Many EP will go up 30 to 50% on first day itself. many will make extremely fast move in few days or weeks. Look at GRWG in August 2020. In 5 days it made 131% move from Earnings EP.
To profit from EP do a deep dive on hundreds of big winners from last few years, you will get good idea of how this setup works and he profit potential.
I discovered this setup in 2002 and since then have perfected it and trade it every earnings season.
It works best on neglected stocks. Here is a past example of that.
FSLY was good example of EP last year.
So far in this earnings season many stocks are breaking out on earnings EP . $UPST $EXPI $OPEN $U $LC $PLTR $SONo are some recent winners on EP.
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