Stop Shorting Earnings Gap Downs: Here’s The NFLX Reversal

shorting earnings

During earnings season there’s a ton of opportunity in stocks that are hit with bad news.

Surprisingly, that reward lies not in shorting the seemingly catastrophic news, but patiently waiting for the right spot to go long.

The reason for this boils down to market psychology.

Here’s the way this often plays out.

  1. Traders over-react to news that isn’t so bad in a good company.
  2. The initial weak hands jump ship.
  3. The herd soon follows suit, as fear creates more fear.
  4. Smart money steps in and buys.

We want to follow the smart money.

In today’s video, I show you a fantastic potential reversal play in NFLX. This trade was alerted to Swing Trade Report members and is currently “in play”. We’ll see if it ends up hitting our target or stop in the coming days.

So watch, learn and let me know what you think!



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