Earnings Trade Analyzer

Earnings Trade Analyzer

The Earnings Trade Analyzer completely removes the guesswork from trading post-earnings momentum. It automatically hunts down every stock that gapped up on earnings and algorithmically grades them from 'A' to 'F' based on five distinct structural health factors, handing you a curated list of elite trade setups.

Why Analyze the Post-Earnings Gap?

A massive earnings gap is one of the most powerful catalysts in the stock market. However, not all gaps are created equal.

Amateur traders see a stock gap up 15% on earnings and blindly buy it, only to watch it collapse by noon (the notorious "gap and crap"). They failed to realize that the stock was in a massive 200-day downtrend, and the 15% gap up simply provided institutional bagholders the perfect high-liquidity exit to dump their shares.

Professional momentum traders only buy earnings gaps when the underlying structural conditions are perfect. The gap must be supported by long-term uptrends, explosive institutional volume, and safe proximity to moving averages.

The Earnings Trade Analyzer mathematically calculates these exact conditions. It scores and ranks every post-earnings gap in the market so you only risk capital on the highest-probability, 'A-Grade' setups.

How Pierce AI Executes It

When you ask Pierce to analyze recent earnings trades, it runs a heavy automated grading system:

1. The Catalyst Query: Pierce queries the market database for all liquid, mid-to-large cap stocks (>$1B) that have reported massive, positive quarterly earnings growth within the recent cycle.
2. The 5-Factor Score: For every stock that gapped up on earnings, Pierce runs a technical analysis and scores it out of 100 based on five rigid factors:
   • The Gap (%): A larger initial gap implies a stronger institutional surprise.
   • Pre-Earnings Trend: Was the stock already in an established uptrend, or is it trying to reverse a death spiral? (Uptrends score significantly higher).
   • Volume Ratio: Was the gap fueled by average daily volume, or massive institutional buying pressure (e.g., 300%+ above average)?
   • Position vs. 200-Day MA: Is the stock safely trading above its primary institutional baseline?
   • Position vs. 50-Day MA: Is the stock supported by short-term momentum?
3. The Letter Grade System: Pierce translates the complex data into an immediate, actionable Letter Grade (A, B, C, or D).

Key Metrics & Deliverables

By running the Earnings Trade Analyzer, you receive a master cheat sheet of the best momentum setups in the market:

• The Graded Roster: A clean, ranked list of post-earnings movers, immediately telling you if the setup is "A-grade" or "D-grade."
• The Composite Score: The exact 0-100 rating that determined the letter grade.
• The Structural Details: The raw data backing up the score, including the exact volume ratio and moving average positions.
• Top 5 Deep Dive: For the highest-scoring setups, Pierce provides a full paragraph synthesizing the analysis and explaining exactly why this is a high-probability trade.

Example Prompts & Use Cases

You can actively push Pierce to grade the market's momentum targets using these specific prompts:

• "Analyze recent earnings gaps. Which ones are worth trading?"
• "Run the earnings trade analyzer. Show me the 'A-Grade' setups."
• "What stocks gapped up on earnings recently? Score their setups."
• "Find me the best post-earnings trade setups backed by huge volume."

By explicitly asking to "score" or "analyze" earnings trades, you trigger the automated grading matrix.

Methodology Notes & Limitations

Grading a trade setup is the first step, but tactical execution still matters:

• Wait for the Pause: Even 'A-Grade' earnings gaps usually need 3 to 5 days to "digest" the move. Do not blindly buy the stock on the morning of the massive gap. Wait for the stock to consolidate in a tight flag or pull back slightly before entering.
• The Overextended Penalty: If a stock gaps up 40% and is now trading 50% above its 50-day moving average, Pierce may actually penalize the score. The stock is too "extended" to safely buy without a heavy risk of a deeply painful mean-reversion pullback.
• D-Grades are Short Candidates: If a stock gaps up on earnings but receives a 'D' grade because it is trapped under a declining 200-day moving average, it is a prime candidate to "fade" (short sell) as the initial hype collapses.

Built for the Earnings Sniper

A great earnings report does not automatically guarantee a great trade. The Earnings Trade Analyzer forces you to ignore the noise and focus purely on structure. By filtering out the low-quality "gap and crap" run-ups, this skill ensures you only deploy capital into fully aligned, highly liquid 'A-grade' momentum setups.

Note: The Earnings Trade Analyzer requires complex composite scoring of both fundamental growth and technical positioning, and is included in the Preferred tier and above. Save this query as a Pulse to automatically receive a graded list of setups at the end of every week during earnings season.