40 of the most profitable days of the year... [TradeSmith Daily]( Turning Earnings Season into Profit Season This April
You never know when or where a eureka moment will strike. For the mathematician Archimedes, it came while taking a bath. As he lay down in the tub and watched water spill over the sides, he realized the displaced water must be equal to the volume of his body — and thus stumbled upon the principles of buoyancy and density. He was reportedly so excited that he jumped out of the bath and ran through the streets shouting “Eureka!” For John Lennon (according to rock-and-roll legend), the eureka moment came in an antique store when he noticed an interesting poster, which would inspire his song “Being for the Benefit of Mr. Kite!” For George de Mestral, it came on a hike when he noticed burrs attached to his dogâs fur. He took the burrs home, examined them, and eventually imitated their structure to create Velcro. For LikeFolio founders Andy and Landon Swan, their eureka moment came from their memories at the racetrack. Inspired by a horse racing tip sheet, Andy and Landon launched a Weekly Earnings Scorecard “tip sheet” that contains scores and trade ideas for every company reporting earnings in the week ahead. I wonât bog you down with information about the proprietary technology behind it, but I will say that LikeFolioâs consumer data gives them a unique ability to predict which companies will surprise the market and which will disappoint. With earnings season almost upon us, itâs the perfect time to share LikeFolioâs “1-2-3” process for spotting big opportunities. And âbigâ is not an exaggeration, as this upcoming earnings season could contain 40 of the most profitable trading days of the entire year. RECOMMENDED LINK [A bonanza of profits incoming?](
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When you click to watch this demo, youâll also get step-by-step instructions on how YOU can potentially do the same. Once you know this secret, you can sit at your kitchen table in your underwear and potentially earn tens of thousands in extra income every year. [I reveal everything in this new video... including an âover the shoulderâ demo of how the system works](. No. 1: Be Mindful of Market Trends
When the LikeFolio team constructs an earnings trade, they start with an overall market trend, since that can act as a headwind or tailwind for individual stocks. If a particular sector is in a downtrend, theyâll lean aggressively into their bearish earnings signals. Should they see upward momentum in another sector, theyâll focus more on bullish earnings signals. That said, the “one thing” that creates the hottest investing opportunities — the thing the LikeFolio team has built their whole system around — is the consumer. And what consumers are saying in their Twitter posts gives LikeFolio a big head start on finding moneymaking opportunities. No. 2: Consumers Are âthe Forceâ — Use the Force
If you have any doubt about the power of the consumer, remember this single data point: In America, consumer spending drives nearly 70% of everything that happens in our economy. Consumer spending is like one big election, where wallet-based voting takes place each and every day. That voting separates the winners and the losers… with products and services, and with the companies that sell them. A product thatâs a big hit can do wonders for a companyâs sales and earnings — and its stock price. Understanding where consumer interest is hot — and where itâs not — gives you an enormous edge heading into earnings season. The cheat sheet below breaks down where consumers are voting with their wallets, and it can serve as an excellent guide throughout earnings season:
The green industries (on the left) are seeing positive consumer interest — a tailwind for companies in those categories. This could make corporate execs more optimistic, boosting the potential for an all-important “forward-guidance increase” when they talk about their full-year 2023 outlook. The red industries (on the right) are just the opposite. Consumers are cooling their spending in these categories, which means companies there could become more conservative for the year. But itâs all about balancing guideline No. 1 and guideline No. 2. If LikeFolio sees a negative earnings score on a company that is in a green consumer sector, or a positive score on a company in a red consumer sector, theyâll probably play it more conservatively — or pass on it altogether. However, if a companyâs earnings score lines up with the overall consumer trend for its sector, theyâll move into the trade aggressively, seeking big profits. This brings me to LikeFolioâs third — and final — rule. RECOMMENDED LINK [âThe Most Profitable 40 Days of the Yearâ](
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The beauty of LikeFolioâs research is that they can set up trades to cash in on consumer trends in publicly traded companies before those companies report earnings. Hereâs an example. In early January 2022, LikeFolio saw bullish trends for binge-watching favorite Netflix Inc. (NFLX). New subscriber growth mentions were up 3% year-over-year (YoY) while other streaming services were losing steam.
Major green flags like those naturally led to a bullish earnings signal ahead of the companyâs fourth-quarter earnings report, which came out Thursday, Jan. 19. Thanks to that early signal, LikeFolio doubled down on their already-bullish thesis for the company and alerted readers to the opportunity on Jan. 13. And boy, did it pay off. The quarterly report was so positive that Netflix shares spiked 8% on the news. And readers who followed their bullish recommendation were able to bank 112% gains in the space of just five days. And thatâs just one example. LikeFolioâs research allows them to look at big — scratch that â huge moneymaking opportunities every week of every earnings season. Itâs exciting, fun, and — as you saw — full of profit potential. As the earnings report rollout begins, remember:
- Be mindful of market trends.
- Use consumer trends by sector to spot big profit plays.
- Be opportunistic.
Enjoy your Wednesday, [Keith Kaplan]Keith Kaplan
CEO, TradeSmith One More Thing Please mark this date in your calendar: Tuesday, April 4, 2023, at 8 p.m. Eastern. On that day, Iâll be joined by “super traders” Andy and Landon Swan in a special presentation with one very clear purpose: To show you how to take full advantage of what professional traders are saying could be “the 40 most profitable days of the year.” The Swan brothers are about to pull back the curtain on their proprietary research to show you how to “get in… get out… and get paid now” over and over again during the next 40 days. I know that life gets busy, which is why I wanted to make sure you could carve out time right now to save your seat for the [40-Day Get Paid Now Summit](. I look forward to your attendance. [Download now on the Apple Store](
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