Today I’m going to focus on my absolute favourite setup, the OVI post earnings gap and flag. And today I’m going to combine that setup with a recent cross of a key level, the 200 moving average.
This is the power of the filter combinations we have. They’re extraordinarily potent and regularly unearth high probability gems, while also saving time.
What about pre-earnings?
Of course we do have other very powerful variations to these filters, and I’m not averse to my OVI pre-earnings play too, though you must handle those with care and treat them separately as they’re more in the “fun” bucket!
That doesn’t mean we don’t take pre-earnings seriously, it’s just that we accept there is more risk with pre-earnings and it’s not for everyone.
The difference being, post earnings should absolutely be for everyone.
And outside earnings?
And of course we have the high probability setups that are outside of any particular earnings cycle.
So, we can enjoy an all-year round capability while sticking to our principles of high probability OVI setups.
Also worth remembering is that post earnings covers 40 weeks of the year in any case!
Are stock splits coming back into vogue?
Apple’s upcoming 4/1 stock split (August 24th) harks back to the good old days of stock splits, making larger companies more accessible to smaller trading accounts.
The split on its own doesn’t mean much in terms of a trading opportunity as the setups will be unchanged, but for many people a lower share price is more accessible and feels more manageable.
Today’s OVI market review focuses on post earnings setups, but I have also added other stocks into your homework watchlist!