| Institutional investors play by a different set of rules. While most traders aim for modest returns, Wall Street's elite target explosive moves - often before the market even opens. Well... after years of trading, I've discovered a phenomenon that happens on Wall Street the morning before the opening bell that offers potential for these triple-digit gains. In fact, Harvard and Duke University recently conducted a joint study detailing how it works. What the Research Shows The study found that stocks experiencing earnings beats don't just spike once - they often sustain momentum for weeks or even months as institutional investors adjust their positions. This is because institutional investors and market makers need time to adjust their positions, creating what traders call Aftershocks at the opening bell. Even the Federal Reserve and the Securities and Exchange Commission (SEC) analyzed how these earnings surprises impact stock prices. Their findings confirm that markets tend to undervalue the momentum of a strong earnings beat, leading to sustained moves well beyond what most investors expect. This undervalued tendency has proven to be an effective time to get in on a stock according to Wall Street. Whenever a catalyst event happens... say a company reports earnings - there's often the chance Wall Street overreacts to its stock price. The stock might make a big move up - or a big move down - or stay flat. Nobody knows. Yet, smart money doesn't try to guess where that move will be. Instead, it waits until AFTER the earnings dust settles before making its move. | 
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