Sep. 7 at 12:17 PM
The One Thing No Momentum Signal Can Predict
$CRDO dropped -31% this week after reporting earnings. CRDW fell -10.8%. Both were technically strong setups. Both got blindsided by ER volatility that had nothing to do with price structure or momentum.
This is a known risk in momentum swing trading — not a flaw in the methodology.
The fix: stocks with earnings within 5 days of signal date are automatically excluded from the Top 5. If a company can report during the hold period, it doesn't make the list.
Is it perfect? No. That's what disciplined trading is.
$SPY $QQQ $IWM