Trading Blog

How to Identify the Strongest Post-Earnings Momentum Setups

Based on 109 completed post-earnings momentum setups, PTJ’s 2026 data shows that the strongest trades weren’t necessarily the stocks making the biggest initial moves. Setups moving 7%–12% produced an 81.6% favorable next-day EOD rate, while 20%+ moves averaged just 8.07%…

MNDY Vs. ACH Case Study: Why Trade Selection Matters

In this MNDY vs. ACH post-earnings case study, I compare two bearish setups from August 10, 2026. MNDY fell 13.95% during its first hourly earnings candle but produced just 4.92% MFE, while ACH initially dropped 19.76% before extending to a…

CAKE Case Study: Where Should You Put a Stop Loss?

Cheesecake Factory (CAKE) delivered an impressive post-earnings momentum setups after reporting a 23.08% EPS beat and a 3.46% revenue beat, while raising full-year revenue guidance. The stock surged 5.17% during the first hourly earnings candle before pulling back into the…

Concentrated vs. Diversified Portfolio: Which Strategy Is Better?

Successful trading or investing isn’t about choosing between concentration and diversification. It’s about knowing where concentration creates opportunity and where diversification protects you from uncertainty. The best investors in history concentrated their highest-conviction ideas, while the best risk managers understood…

Does Price Action Matter More Than Earnings?

In 65 tracked post-earnings set ups, stocks with clearly aligned fundamentals and technicals did not produce higher MFE or a better probability of reaching a 9% profit target before a 5% stop. Surprisingly, set ups classified as fundamentally and technically…

ASTS Case Study: How to Identify Better Momentum Trade Entries

Convertible note offerings can create some of the best momentum trading opportunities outside of earnings season because they introduce the potential for future share dilution. In AST SpaceMobile’s case, the company announced a $1 billion convertible senior notes offering with…

How Often Do Stocks Gap Up vs. Gap Down After Earnings?

Stocks can move dramatically after reporting earnings, but do they usually gap higher or lower? To find out, I analyzed dozens of post-earnings setups and compared the results with decades of academic research on earnings announcements. The results were surprisingly…

IBM Trade Review: A Simple Momentum Trade Driven by Bad News

IBM plunged more than -26% after issuing disappointing preliminary second-quarter guidance, creating a textbook momentum trading opportunity. I entered a $1,000 short position using my standard 9% profit target and 5% stop loss, ultimately locking in $99 in profit in…

Can Stocks Keep Going After a 20% Earnings Jump?

Most traders assume that a stock jumping 20% after earnings is worth chasing. But does a bigger earnings move actually lead to better returns, or a higher chance of retracement? To find out, I analyzed 56 post-earnings momentum trades, measuring…