📝 Three Trades for the Week

Three Pre-Earnings Volatility Plays Into as Earnings Seasons Winds Down

Market Summary

The market began with mixed signals, as oil prices surged back above $100 per barrel and the 10-year yield edged closer to 4.6%. These fluctuations kept stocks on the defensive throughout the morning. However, by early afternoon, the market stabilized. SPY is currently hovering around 742, maintaining a relatively flat performance. The Nasdaq 100 mirrors this trend, trading near 713. Among the positive developments, small-cap stocks stand out, with IWM experiencing a modest 0.8% increase and leading the way. This week’s focus is on the upcoming earnings season, which is nearing its end. Three prominent companies are set to release their earnings reports, all of which are characterized by pre-earnings volatility. Given this volatility, a prudent strategy would be to capitalize on it and exit before each report is released. Below is an overview of our approach to these stocks.