One of the more common patterns seen in a strong market are longer term players buying stocks that have gapped lower after earnings. Sometimes this plays out on Day 1 with momentum buyers aggressively buying the stock leading to a gap fill. But many times a gap fill will play out in the days following the earnings release once the longer term players have sifted through the earnings report and feel comfortable that a positive fundamental thesis for a company is still intact.
It is important to pay close attention to price action and not be overly aggressive committing to a "gap fill" thesis until the larger players have tipped their hand. Let's look at two companies that gapped lower recently Read more [...]
One of the more common patterns seen in a strong market are longer term players buying stocks that have gapped lower after earnings. Sometimes this plays out on Day 1 with momentum buyers aggressively buying the stock leading to a gap fill. But many times a gap fill will play out in the days following the earnings release once the longer term players have sifted through the earnings report and feel comfortable that a positive fundamental thesis for a company is still intact.
It is important to pay close attention to price action and not be overly aggressive committing to a "gap fill" thesis until the larger players have tipped their hand. Let's look at two companies that gapped lower recently Read more [...]