Roku just released some bad earnings on Thursday Singapore time when the market opened. It was so bad that the stock dropped 22% when it started trading. As you can see from the 5 minute chart, the stock gap down and had some short covering before selling down further. My student shorted 30 shares 1 day before the result and made some good returns with $885 with just a small positions. The key thing was how did he shorted before the result?
https://www.fool.com/investing/2019/11/07/why-rokus-stock-crashed-today.aspx
Can you see the stock had a recent fall and then recovered very fast to the supply zone without a 3/4 bottom? It's like a V shape rebound with a lot of buyers thinking the stock was cheap when it dropped from $180 to $100 where they started to buy irrationally. Then at the peak, it gap up with a long bar and touched a very critical supply zone before starting to simmer off a little where earnings kicked in at the right place, right time where the stock reported bad earnings and it gap down again. That's a cycle that goes on and on in the stock market. Well, I just want to congrats my student who shorted before the earnings using the analysis and strategies I taught that enabled him to sell before earnings and made some good profits. :)
Ron K - A Game Changer
