(Buy Now?) Top 3 Stocks To Watch After Reporting Earnings!!! | Summary and Q&A

TL;DR

This video discusses three stocks that reported earnings and experienced significant moves, offering potential reversal trading opportunities.

Key Insights

• ✋ Reversal trading strategies involve buying the dip or shorting the high of a stock's reversal to take advantage of significant moves.
• 😫 Setting alerts and waiting for confirmation is crucial in reversal trading to avoid trying to predict future price movements.
• 💦 Stocks that experience significant drops or gains after earnings can present potential reversal trading opportunities.
• ❓ Overbought stocks may have potential selling pressure and correction opportunities.
• ❓ Reversal trading requires identifying the three stages of a reversal: rejection, consolidation, and confirmation.
• 💦 Each stock mentioned (Snapchat, Arm, Palantir) has specific characteristics that make it a potential reversal trade, such as significant price drops or overbought conditions.
• 🥳 It's important for traders to have their own criteria and risk-to-reward ratios when evaluating potential reversal trades.

Transcript

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Questions & Answers

Q: What are the three stages of a reversal?

The three stages of a reversal are the rejection phase (continuous selling off), the consolidation phase (showing signs of support), and the confirmation phase (higher highs and higher lows).

Q: Why is Snapchat considered a potential dip buy opportunity?

Snapchat dropped significantly after reporting earnings, offering a potential opportunity for a reversal trade. If it starts to recover to the moving average or previous resistance levels, it could provide a return of up to 57%.

Q: How can overbought stocks like Arm present a shorting opportunity?

When a stock like Arm reacts positively to earnings and becomes overbought, there is potential for selling pressure and a correction. Traders can wait for confirmation of rejection and open a short position to profit from the stock selling off.

Q: How can traders identify reversal opportunities in stocks like Palantir?

If a stock like Palantir experiences a significant increase after earnings, traders can wait for signs of selling pressure and a correction. Setting alerts to monitor the stock's movement can help identify potential reversal points.

Summary & Key Takeaways

• The video highlights Snapchat as a potential dip buy opportunity after its significant drop following earnings. The speaker emphasizes the importance of setting alerts and waiting for signs of a reversal.

• Arm is mentioned as a stock that reacted positively to earnings but may have selling pressure in the future, presenting a potential shorting opportunity.

• Palantir (PLTR) is discussed as a stock that has seen a 45% increase but may also have correction potential, with reversal trading opportunities if it begins to pull back.