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When an Earnings Winner Screams “Come Get Me”

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Trade of the Day Wake-Up Watchlist

"When an AI powerhouse like DDOG crushes earnings – the party could be just beginning."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Earnings season is full swing, and I'm looking for "Aftershocks" candidates.

One ticker I like right now is Datadog (DDOG).

The AI security group crushed earnings yesterday, jumping 23% after it reported 28% revenue growth and higher guidance.

But I think this is just the beginning.

 

As you'll see in the chart above, DDOG is surging higher after earnings.

It's up around $188 at the time of this writing, and its all-time high is $199.68.

To me that just screams "COME GET ME" so it can take out the highs and break $200.

How to Trade "Aftershocks" Winners

When a company like DDOG crushes earnings, it often gaps up at the open like we're seeing in the chart above.

But that gap up is usually just the start…

After a big beat like that, the retail traders can't help themselves.

FOMO kicks in, and that can trigger a secondary move known as the "aftershock."

To capture this momentum for gains, all you have to do is get positioned BEFORE that secondary move.

It's one of the simplest ways to play earnings I know.

Right now DDOG is checking all of those boxes needed for an "Aftershocks" trade right now.

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