| Because of investor overreaction or underreaction, a bevy of longer-term opportunities open up after earnings. Now, that's not to say short-term moves don't have the potential to be effective for generating gains. They certainly do. However, the reason I prefer to focus on long-term plays is that short-term speculators can decimate a company's shares post-earnings, which can make trading unpredictable and volatile. These speculators rely on premarket trading to set the tone, and they're led by "market maker" tricks. Market makers are analysts who might hear one negative thing on a conference call, get bothered by it, and then "whisper" less-than-ideal numbers to urge traders to bail out of the company. Now, overnight traders who know what they're doing - like Bryan - can use this to their advantage instead of being manipulated. And these sell-offs are great for longer-term investors like me, too. If I see shares sell off excessively after a specific event like an earnings report, I swoop in to carve out a trade based on the long-term trend. Let me give you an example of how our approaches can work in tandem... Last week, Bryan played Charles Schwab (SCHW) for a 26.35% overnight gain. Here's how some of our War Room members did on that trade... "In at $2.23, out at $2.62. Just under 17.5% [overnight] ringer! Thanks, BB!!" - TeeUp18 "In at $2.39 out at $2.92. 22% [overnight gain] thanks @BB." - Jayardi "I closed the 1 Shares/Contracts I opened at $2.20 for $2.64. 20% [overnight] and I could have got some more. Thanks, BB!" - Cire S. All those gains resulted from Schwab's big sell-off. But despite the drop in the stock, there was a ton of good news in the initial earnings report. The company announced it was managing more money and that its cash-sorting issues were declining. It also noted that the rise in interest rates throughout 2023 hurt its balance sheet, which bodes well as Schwab enters a year in which multiple rate cuts are expected. So I knew the downward move for the stock was only temporary. After the dust settled over the next few days, I jumped in with a longer-term play... and we are already up almost 20%! This is the power of pairing short-term plays with long-term plays. Bryan and I do it all the time in The War Room - it's a win-win! YOUR ACTION PLAN This kind of action is what makes The War Room truly special. But you don't have to take my word for it. For two days - January 30 and 31 - we are opening the doors for our first-ever War Room Fast Pass. It'll be two days of an all-you-can-eat (or, in this case, all-you-can-trade) buffet. This event is also totally FREE - put that credit card away! And you can bet that Bryan will have some special Overnight Trade picks waiting for you. His Overnight Trade strategy is especially effective during earnings season because earnings can serve as a major catalyst for massive stock moves (in either direction). Click here to get on the guest list to join our War Room Fast Pass next week for FREE.
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