skip to page content

Can MarketClub's Trade Triangle Technology Predict Earnings?

Adam Hewison - MarketClub

Loading the player...

Today, I'm going to investigate whether or not MarketClub's Trade Triangle technology can predict stock earnings.

To do this I randomly chose 7 stocks that just reported their Q3 earnings. Here are the rules I followed for taking or not taking a position in a stock before a company announced its earnings.

Long And Short Rules

Use the Trade Triangle technology to determine how you would have been positioned in each stock before they announced their earnings. You are looking for uniformity between the monthly and weekly Trade Triangles, i.e. a matching monthly and weekly green Trade Triangle would indicate holding a long position before an earnings announcement. Conversely, a matching monthly and weekly red Trade Triangle would indicate holding a short position before an earnings announcement.

Sideline Rules

When there is a conflict between the weekly and monthly Trade Triangles, a sideline position is in order. For example, if a monthly Trade Triangle is green and the weekly Trade Triangle is red, it would indicate a sideline position. 

Here are 7 stocks that just announced their earnings:

Facebook Inc. (NASDAQ:FB) - monthly and weekly green Trade Triangles (expect better earnings) - Hold Long Position 
Celgene Corporation (NASDAQ:CELG) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines
QUALCOMM Incorporated (NASDAQ:QCOM) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines
Marathon Oil Corporation (NYSE:MRO) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines
CenturyLink Inc. (NYSE:CTL) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines
Bojangles' Inc. (NASDAQ:BOJA) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines
Lannett Company Inc. (NYSE:LCI) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines

Let's see how this strategy works today after the close with these three stocks.
 
The Walt Disney Company (NYSE:DIS) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines
News Corporation (NASDAQ:NWSA) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines
Monster Beverage Corporation (NASDAQ:MNST) - monthly red and weekly green Trade Triangles (expect flat to lower earnings) - Sidelines

In today's video, I will review all of the above stocks and update you on the last three stocks to see if there are any last minute changes.

Back to videos

Get Started With Your 30-Day MarketClub Trial Right Now

Get Started

© Copyright MarketClub™ All rights reserved | User Agreement

U.S. Government Required Disclaimer—Commodity Futures Trading Commission
Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41—HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or INO.com. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the MarketClub™ methodology or system will generate profits or ensure freedom from losses. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. Each individual's success depends on his or her background, dedication, desire, and motivation.