Mar. 7 at 11:48 AM
Earnings season has been handy so far.
$DAVE did what i expected - and, in fairness, what they told you in advance - but the financing power play afterwards sustained the move with real strength.
Three other plays that worked well were all ones where Algos and retail forgot to read below the fold and just based their reaction on the topline number without seeing the wood for the trees.
$INSG - bought at 8.6-9.2 and sold at 12
$DUOL - bought at 91 and sold at 102
$NUTX - had a starter at 105, bought more below 80 and much more at 70-71 and sold at 92.
My strategy in these plays is to retain 50% of profit as free shares. That way you protect capital, realize profit and ensure some participation in future upside.
You can then rotate gains into thematic plays that you like longer term and wait for conviction plays to deploy meaningful capital.
This is a market that will continue to offer significant overreactions in both directions.
