"The Post-Earnings Profit Pattern You Need to Know" Nate Bear, Lead Technical Tactician, Monument Traders Alliance EXCLUSIVE INVITE: 2025 Portfolio Booster-Pack LIVE Training Market volatility creating challenges in your trading? Here's your chance to level up! Join Nate Bear and special guest JC Parets (founder of TrendLabs) on Wednesday, May 7th @ 2pm EST for an essential technical analysis masterclass. In this FREE live training, you'll discover: - How to use RSI like a pro to identify real momentum
- The secrets to reading moving averages for better entries and exits
- How to spot winning sectors early using relative strength
- Precision timing with Fibonacci price zones
- PLUS: Live Q&A and stocks with active "Smart Money Setups"
Click here to secure your spot now This session is completely FREE and will be streamed LIVE inside the Monument Traders chat room. - Ryan Fitzwater, Publisher, Monument Traders Alliance Hey Gang, While most traders are nervously watching the Fed ahead of tomorrow's rate decision, I've been busy banking profits on Microsoft (MSFT) using my Opening Bell Aftershock strategy. In fact, just yesterday I spotted the perfect setup that turned into a lightning-fast 100% winner: That's right - we doubled our money in Microsoft call options while most traders were still sipping their morning coffee! And the best part? This setup wasn't a random occurrence. It followed the exact pattern I've been teaching my Profit Surge Trader members to spot - a powerful post-earnings continuation that creates multiple profit opportunities. But before I break down this trade and show you another MSFT setup that's forming right now, let's get a sense of where the broader market stands. Current Market Conditions We're at a critical juncture with the Fed decision looming tomorrow. The market has been volatile but resilient, with stocks showing remarkable strength despite ongoing concerns about inflation and interest rates. The S&P 500 has been grinding higher, with tech stocks leading the way. In fact, we've had one of the best nine-day runs in market history. This is exactly the kind of environment where my Opening Bell Aftershock strategy thrives - when strong earnings winners like Microsoft continue their upward momentum while weaker stocks get left behind. Volatility has started to contract, with the VIX hovering just below 25, above its historical average, but well below recent levels. Now, let's break down exactly what happened with our Microsoft trade and why it delivered such explosive profits. The Microsoft Aftershock Winner Microsoft recently crushed earnings expectations, beating analyst estimates on both revenue and profit. However, it took me all day to get filled at the price I wanted. Take a look at this 15-minute chart: What you're seeing here is textbook Opening Bell Aftershock behavior. After the initial "Jump on Earnings Beat," Microsoft didn't just fade away - it formed a beautiful "Consolidation Pattern with Stacked Moving Averages." This pattern is gold for traders who know what to look for: - Strong earnings beat creating the initial surge
- Perfect consolidation near the highs rather than selling off
- Stacked moving averages (8 EMA above 21 EMA above 55 EMA) providing multiple support levels
- Nice squeeze forming at the bottom of the chart, indicating compressed volatility ready to explode
While I wanted to get into the trade much earlier, I wasn't about to chase price. So, I patiently waited until near the close when shares took a late-day dip. Sure enough, within minutes of the market opening the next day, those calls surged to over $2.00, delivering a clean 100% gain as I posted in my trade update! This isn't luck - it's a repeatable pattern that occurs when stocks significantly outperform Wall Street's expectations by 1.5x or more, creating a situation where market makers must rapidly adjust their positions when the market opens. Sometimes, it just takes a little patience. Another MSFT Setup Forming Now But here's what's really exciting - Microsoft is setting up for another potential winner right now. Take a look at this new setup on the 30-minute chart that's developing: This is what I call a "bonus trade" - a second opportunity to profit from the same earnings winner. My trade plan is straightforward: - Entry @ $0.89
- Stop under $0.30
- Target $1.80+ (potential 100%+ gain)
What I love about this setup is that it's forming in the same consolidation pattern we saw with our previous winner, but on a slightly longer timeframe. The stock is digesting its gains while maintaining its uptrend, creating the perfect conditions for another move higher. With the Fed announcement tomorrow, we could see increased volatility that might accelerate this move. Either way, the technical setup is too perfect to ignore. |
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