Most of the time earnings are completely unpredictable. Sometimes though, we get a few hints through price. Let's dig in.
The first thing you think when seeing this is the bullish falling channel pattern. Careful observers notice the false channel break and that's the key to the interpretation of price action.
We see EXPE after that monster trendline break settled in nicely at support for a few days prior to their beat and jump to the mid 70's
The 45 breakout in CPHD broke a 1.5 year range. The very first back test of such a significant level is generally buyable. It proved to be so once again this time.
The real key thing here is the psychology of these moves. It's important to remember the people really moving these stocks in the long run know a lot more information about these companies performance than we do.
In the instance of LNKD traders didn't want to sell it leading into earnings because momentum plays were going through the roof, but the real resistance level held.
In the cases of CPHD and EXPE, buyers had no interest in buying the extended breakout in this shaky market but the key breakout levels held + set buyers up on a tee.
If you're going to make bets on earnings, pay attention to the sentiment around stocks in the space and watch key trend-lines to slide the odds in your favor.
