Trading Blog

Are Corporate Spin-Offs Bullish For Investors?

Corporate spin-offs have historically produced some of the stock market’s biggest winners, but are they actually bullish for investors? In this article, we’ll examine what happens to shareholders during a corporate spin-off, why companies separate business divisions, what decades of…

Can You Trade Outside of Regular Trading Hours (Outside RTH)?

In this article, you’ll learn how trading outside Regular Trading Hours (RTH) works, the differences between premarket, after-hours, and the regular trading session, why companies report earnings outside market hours, and the unique risks and opportunities of extended-hours trading. We’ll…

When Should You Sell A Losing Stock?

Millions of traders and investors hold losing stocks, hoping they’ll eventually recover. But while some companies like Nvidia and Meta staged remarkable comebacks, others such as Enron, Kodak, and Lehman Brothers never recovered. In this article, we’ll examine historical data,…

When Is The Best Time To Buy A Stock?

Trying to find the perfect time to buy a stock can feel impossible. Some investors buy during market crashes, while others prefer companies with strong earnings growth or technical breakouts. In this article, we’ll examine historical market data, dollar-cost averaging…

What Happens When A Company Announces A Stock Split?

Stock split statistics show that while stock splits do not directly create shareholder value, they have historically been associated with positive market reactions and strong long-term stock performance. In this article, we’ll examine how stock splits work, review academic research…

Why Do Stocks Fall When the Company Announces an Acquisition?

Acquisitions are often presented as growth opportunities, yet acquiring companies frequently see their stocks fall immediately after announcing a deal. Decades of academic research suggest investors are often more concerned about overpaying, rising debt, shareholder dilution, integration challenges, and lower…

What Stocks Do Well With High Interest Rates?

Interest rates are one of the most important factors affecting stock market performance. When rates rise, borrowing becomes more expensive, economic growth often slows, and some sectors struggle while others thrive. In the following article, we explore which market sectors…

What Happens to Your Shares When a Company Gets Acquired?

Mergers and acquisitions can dramatically impact stock prices and shareholder returns. While some investors receive cash for their shares, others receive stock in the acquiring company, and some deals never close at all. The following examples highlight some of the…

What Would Albert Einstein Think About Day Trading?

Albert Einstein never placed a trade, but what made him one of history’s greatest scientists is surprisingly relevant to modern markets. Einstein believed in evidence over intuition, probabilities over certainty, and questioning assumptions that lacked data. In a world where…

Can a Great Company Be a Bad Investment?

A company can grow revenue, expand earnings, and dominate its industry while still delivering disappointing returns for investors. In 2000, Cisco traded at more than 130 times earnings, while SpaceX recently reached a valuation of roughly $1.75 trillion despite generating…

What Happens After the Yield Curve Un-Inverts?

Traders and investors often assume that once the yield curve returns to a normal upward slope, the recession warning is over. However, historical data tells a different story. In this article, we’ll examine past yield curve un-inversions, recession timing, and…

Does the Stock Market Bottom Before a Recession Ends?

Does the stock market bottom before a recession ends? Surprisingly, history suggests that it often does. In many cases, the S&P 500 has reached its lowest point months before a recession officially ended and before economic data began improving. In…

Why Do Stocks Gap Up After Earnings?

Why do stocks gap up after earnings? Earnings announcements are one of the few scheduled events capable of moving a stock 10%, 20%, or more overnight. When a company reports results or guidance that significantly exceeds expectations, investors rapidly reprice…

What Happens After the VIX Spikes Above 20?

A VIX spike above 20 is often seen as a warning sign that fear is entering the stock market. But does elevated volatility actually predict poor future returns? In this article, we’ll examine historical VIX data, analyze how the S&P…

Why Do Stocks Go Down When They Beat Earnings?

Ever wondered why stocks go down on good earnings despite reporting better-than-expected results? In this article, we’ll explore why strong earnings reports don’t always lead to higher stock prices and look at what academic research says about post-earnings stock performance.…

DY Case Study: When Earnings and Technicals Align Perfectly

Not every good trade comes from a high-profile, high-volume name. In this case, Dycom (DY) reported earnings that beat expectations, showed year-over-year growth in revenue and EPS, andraised its quarterly and full-year guidance. In the following DY case study, I…

NTAP Post-Earnings Momentum Case Study

NetApp (NTAP) delivered one of the cleanest A+ post-earnings momentum setups I’ve tracked so far. While many earnings trades rely on either strong fundamentals or strong technicals, NTAP combined both. A significant earnings beat, raised guidance, elevated short interest, and…

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