12 Keys to Trading Earnings for Profits

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#1 The Earnings Season Trade

We say earnings "season" because that's the convention (although as you'll find out, we tend to avoid "convention").  "Official" earnings season typically kicks off with Alcoa (AA) during the first or second week of January, April, July and October. 

For the ensuing month, the majority of S&P 500, Dow Jones Industrial, and Nasdaq 100 companies will report their earnings for the previous quarter.  In fact, two-thirds of the S&P (330 companies) usually report within four weeks of Alcoa's announcement.  Many will also provide outlooks for the following quarter and possibly the full year as well.

Actually, earnings reports hit the tape throughout the year.  Sure, there are dead spots during a quarter, but they don't last long.  For instance, many major financial companies report in mid-quarter, while results from retailers are spread throughout the quarter. 

The bottom line is that earnings provide trading opportunities all year round, with certain periods being heavier than others.

So what's the big deal?

Earnings create expectations.  They create volatility.  They create trading volume.  And they do it like clockwork -- four times every year -- for every stock on the market. 

That's a lot of opportunities. 

Huge profits are yours with Chris Johnson's earnings season's strategies!