5 Reasons This Week Will Be Huge for Stocks
It’s Sunday, which means tonight at 7 p.m. Eastern we will be sending LikeFolio Earnings Season Pass members their earnings sheet for the week ahead.
And I have to tell you, I am more excited about this upcoming week than I have been in a long, long time.
Here are five reasons why:
No. 1: There are 71 Confirmed Earnings Reports!
Seventy-one. This may be the busiest, most exciting week in the history of our Earnings Season Pass product.
And this isn’t just about trading. The odds are really high that a company in your portfolio right now is about to report earnings this week, and LikeFolio’s consumer insights can give you a data-driven clue as to how the market might react when the numbers come out.
No. 2: We Identified 35 Specific Trade Opportunities!
Every company on the earnings sheet has an “earnings score” that ranges from -100 (most bearish) to +100 (most bullish).
Scores above 20 or below -20 are generally solid opportunities to trade for fast profit.
Of the 71 companies reporting this week, 36 are showing a “neutral” signal, which means our data thinks that Wall Street probably has the stock priced right going into earnings.
But 35 of the companies have consumer data that is telling us Wall Street has it wrong and will have to correct post-earnings.
And the mix is spectacular — 18 bullish opportunities and 17 bearish opportunities.
For each of those opportunities, we assign a specific trading strategy that helps us maximize profits, strictly define risk, and take advantage of as many opportunities as possible, even with a small brokerage account.
It’s incredibly exciting!
No. 3: Three Brand-New Companies
We’re constantly adding new companies to our coverage list. IPOs, SPACs, and requests from our members drive the additions to the list.
This week, three of those recent additions will be listed on the Sunday Earnings Sheet:
Datadog (DDOG) — This stock is retesting highs from earlier this year — will this earnings report be the company’s breakthrough moment above $120?
Fiverr (FVRR) — The market is expecting a big move from this stock on earnings, with company guidance being a focus. LikeFolio Consumer Demand has some thoughts about that…
Xpel (XPEL) — This stock is looking to finally break above $100 and run — will this week’s earnings report be the catalyst?
No. 4: Average Historical Profit is Incredible
We are data folks… that’s all there is to it.
So you can imagine how my eyes get wide with anticipation when I see that our averageprofit (including losers!) from trading this week’s stocks on earnings is +15.5%… in just one week.
That means we’re going to have 35 specific opportunities where the odds have historically been in our favor by a large amount.
No. 5: Twelve Reporting Companies have Elevated Short Interest (>15%)
Earlier this year, we saw just how powerful short squeezes can be.
GameStop (GME) went from $20 to $500.
Even AMC (AMC) made huge runs as hedge funds scrambled to exit their short positions, which continued to drive the price higher.
So you can see why we’d be so excited to see that 12 of the companies on this week’s Earnings Sheet have high short interest. That means they are primed for a short squeeze… if they can deliver earnings results that shock Wall Street.
When I see high short interest and a big, positive LikeFolio Earnings Score, it’s all systems go.
That’s my favorite time to implement some of our more aggressive trading strategies, targeting profits of 300% or more in just a few days.
I’m hoping for a few of those opportunities this week!
Bonus No. 6: It’s only Week 3 of 10!
Every quarter, we send out earnings sheets for 10 weeks in a row.
And this earnings season is just starting to heat up.
There’s still weeks of opportunities left in this season, with hundreds of stocks yet to report…
Including some of our most historically profitable names, like Target (TGT), Lululemon (LULU), and Etsy (ETSY), along with some explosive newcomers, like DraftKings (DKNG).
And every week, I get to discuss the earnings sheet in a video roundtable that is sent directly to our members along with the Sunday Earnings sheet. It’s my favorite hour of the week!
So get ready… because if the data holds true, this week is going to be one to remember.
Enjoy!
Andy Swan
Founder, LikeFolio