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The Honey Badger of Stock Trading: How to Laugh in the Face of Bears and Make Money

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bear waiting for the world to end

Waiting For The World To End

Imagine a world where doom and gloom are as common as pigeons in the park. That’s what it’s like when bears are waiting for the world to end. It’s like waiting for a bus that never comes, only to find a pot of gold at the end of the rainbow instead.

While bears were busy predicting the extinction of Western society, we were busy raking in the profits this week. In fact, following our trading signals, we made money out of thin air and turned it into pure gold, all while the bears are still anxiously tapping their paws. 

Our Ten Signals For Evaluating Earnings Trades

We don’t rely on crystal balls or gut feelings. Instead, we use ten robust signals to evaluate earnings trades, turning the stock market into our playground and the bears into mere spectators.

  • LikeFolio’s earnings score based on social data. It’s like reading the winds of the stock market.
  • Portfolio Armor’s gauge of options market sentiment. It’s like having a secret decoder ring for the stock market.
  • Chartmill’s Setup rating. It’s like looking at the blueprint of winning stocks.
  • Chartmill’s Valuation rating. It’s like knowing the exact value of a treasure chest.
  • Zacks Earnings ESP (Expected Surprise Prediction). It’s like peeking into Pandora’s box before anyone else does.
  • Zacks Ranking. It’s like knowing which stocks are the crown jewels of the stock market.
  • The Piotroski F-Score. It’s like having x-ray vision into a company’s financial strength.
  • Recent insider transactions. It’s like having a backstage pass to the stock market show.
  • RSI (Relative Strength Index). It’s like knowing when to strike while the iron is hot in the stock market.
  • Short Interest. It’s like having a magic wand to predict stock movements.

These signals are our secret weapons, and they’ve been the key to turning this week into a financial carnival where we’re the ringmasters and the bears are just circus clowns.

The Strongest Signals 

After studying the latest data, we found the diamonds in the rough. These were the strongest signals as of the beginning of this week, sending us on a wild ride to financial victory while the bears were still stuck in hibernation.

Real-World Examples From This Week

We didn’t just rely on theories and guesswork. We dug into the trenches and found five stocks to trade out of the dozens reporting earnings this week. We were the hunters, and these stocks were our prized trophies.

Let’s look at two examples of them, one bullish, and one bearish. Others may have been waiting for the sky to fall, but we were busy building castles in the air.

A Stock We Were Bullish On This Week

We didn’t just toss a coin and hope for the best. We were confident in our approach and it paid off like hitting the jackpot in a slot machine.

Ulta Beauty, Inc. ULTA

  • Social data: +44. We were swimming in a pool of positivity.
  • PA Options sentiment: Very Bullish. Our options were as golden as the streets of El Dorado.
  • Setup rating: 3. It was like the perfect storm for a bullish trade.
  • Valuation rating: 5. This treasure was worth its weight in gold.
  • F-Score: 9. We had nine lives, and we weren’t stopping until we reached the top.
  • Recent insider transaction(s): Net open market sales, peaking last December. We were privy to insider secrets like a medieval alchemist.
  • Zacks ESP: -0.39%. This was our lucky number in a game of roulette.
  • Zacks Ranking: 3. The third time’s a charm, and we hit the bullseye.
  • RSI: 70. It was like crossing the finish line in first place.
  • Short Interest: 2.54%. The sharks smelled blood, and it wasn’t ours.

With these signals in our arsenal, we were unstoppable. It was like playing a game of chess where we knew every move our opponent would make before they even considered it.

A Stock We Were Bearish On This Week

Farfetch Limited FTCH

  • Social data: -51. It was like navigating through a fog of negativity.
  • PA Options sentiment: Very Bearish. The bearish signals were as clear as day.
  • Setup rating: 6. It was like a red flag in a bull’s face.
  • Valuation rating: 0. It was like holding a zero-value lottery ticket.
  • F-Score: 2. We weren’t betting on a losing horse.
  • Recent insider transaction(s): None over the last 12 months. The silence was louder than a thunderclap.
  • Zacks ESP: 0%. It was like a coin standing on its side, and we weren’t taking any chances.
  • Zacks Ranking: 3. The third time wasn’t charmed, and we dodged a bullet.
  • RSI: 50. It was like being stuck in the middle of the pack with no way out.
  • Short Interest: 13.58%. The vultures were circling, but they found no prey this time.

It’s like planting a flag on top of a mountain and knowing that the view from the top is worth every step of the climb.

How’s That Working Out For You?

As Edward Norton’s narrator character says in the famous Fight Club clip, “Great”. Following this approach last week, five of the seven trades we placed ended up being winners; this week five out of five were winners: We didn’t just walk the walk; we danced through the markets with grace and finesse.

Options Trades

  • Call spread on Kroger KR Entered at a net debit of $0.41 on 11/29; exited at a net debit of $0.57 on 11/30. Profit: 39%. It was like plucking low-hanging fruits from a money tree.
  • Call spread on Dollar Tree DLTR. Entered at a net debit of $0.45 on 11/28; exited at a net credit of $0.80 on 11/29. Profit: 78%. We turned pennies into dollars with the flick of a wrist.
  • Put spread on Farfetch FTCH. Entered at a net debit of $0.29 on 11/28; exited at a net credit of $0.48 on 11/29. Profit: 68%. It was like turning trash into treasure with a wave of a wand.
  • Call spread on Snowflake SNOW. Entered at a net debit of $2.30 on 11/29; exited at a net credit of $4.74 on 11/30. Profit: 106%. We turned snowflakes into an avalanche of profits.
  • Call spread on Ulta Beauty ULTA. Entered at a net debit of $2.40 on 11/30; exited at a net credit of $4.95 on 12/1. Profit: 106%. We crowned ourselves kings of the stock market.

The results speak for themselves. We didn’t just dip our toes in the waters of the stock market; we made waves like a financial tsunami that swept us to victory. 

If You Want To Stay In Touch

We’re not ones to keep secrets. If you’d like to join us at the winner’s podium, feel free to subscribe to our trading Substack/occasional email list below. We promise there’s no room for bears in our financial rodeo.

 

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