Earnings season is underway.
And even though the stock market is still struggling, theres great news its not as bad as many expected.
The results trickling in are strong enough to hold up this new rebound for the stock market. The positive beat on lowered earnings expectations will keep investors nerves at ease.
But theres one big problem.
These results only represent the first quarter of the year January, February and March.
The economy wasnt shut down until mid-March.
That means these results are not going to come close to what we see when companies start reporting second-quarter results later in July.
Once companies report earnings for the second quarter, well gain insight on how badly the economic shutdown has impacted their operations.
But we dont have to wait until the next round of earnings to take advantage of the stock market.
My Quick Hit Profits readers have locked in quick, double-digit gains over the last few weeks by trading on earnings.
And theyre not gambling on an earnings announcement. Instead, theyre using one of the most powerful options trading strategies to capture gains.
And today, I want to explain how you can harness the power of earnings.
Most investors get excited about the big, one-day move a company experiences when it announces earnings.
But trading that move is nearly impossible. You may get lucky once or twice. But in the end, its a losing game.
Its no different than gambling.
Right now, its extremely tempting to play this game.
Investors are not sure what to think. That will remain the case when the second-quarter results come out in July.
In normal times, companies are confident in the results. They use the performance theyve seen to post an outlook for the year. We call this guidance.
But in this nearly impossible-to-predict environment, the number of companies issuing guidance for the year has been cut in half.
Analysts are taking note of this as they look to the rest of 2020.
And its resulted in the largest decline in S&P 500 Quarterly Earnings per Share (EPS) forecasts during the first month of each quarter.
The 28% plunge at the right represents the economic shutdown hitting the U.S. economy as we speak.
This represents the massive cut analysts have made to their earnings forecasts for companies. Their earnings expectations for the second quarter which will be reported in July are significantly lower based on the dire economic times.
The bottom line shows that investors have no idea how bad the impact will be. Its too big and broad for us to have a clear view right now.
All that volatility will create even bigger one-day moves as investors are caught off guard for better or worse when companies report their second-quarter earnings.
Traders will be eager to place their bets. They hope to get lucky with one lucrative bet.
Now, I dont like gambling with my money on earnings.
Thats why I developed a unique approach that thrives in times like these.
Its a strategy that benefits from extreme volatility and grabs huge gains after companies announce earnings.
I know it sounds like were missing out on big returns. But the opposite is actually true.
By waiting until after earnings are announced, were missing out on big losses. Thats because we can take advantage of consistent trends that develop after an earnings call.
Ive been doing this for years.
And Ive delivered at least one 100% winner, on average, to my readers every single month.
Its a remarkable system!
But with the volatility the market has seen, I think our biggest gains yet are just around the corner.
And history is on our side.
At the beginning of 2018, we saw a 10% correction in the stock market. Back then, I recommended closing seven triple-digit gains in a single day.
At the end of 2018, stocks experienced another correction and fell 20%.
A few months later, those recommendations I sent to my Quick Hit Profits readers netted them gains of 100%, 103%, 104% and even 158%!
Im expecting even bigger results this time around as the market enters a steeper correction.
And our portfolio is already heating up.
In the past few weeks, my earnings-based strategy has notched a string of winners. These include an 11% gain on Nike Inc. (NYSE: NKE) in eight days and a 17% return from State Street Corp. (NYSE: STT) in nine days.
We even notched additional gains of 22% on Roper Technologies Inc. in seven days and a 34% return on Tesla Inc. in five days.
In the coming months, were lining up even more gains, with much bigger results as the market remains volatile.
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