For example, on April 8, Albemarle (NYSE: ALB) dropped 13% in one day as lithium stocks fell in reaction to a report that China has more lithium than previously thought. The stock rallied as much as 22% the following day. A month before that, Super Micro Computer (Nasdaq: SMCI) fell 13% to about $36, possibly on news of insider selling. The following day, the stock jumped as high as 12.6%. Today, the stock trades in the high $40s. One of my favorite examples is Globe Life (NYSE: GL). You wouldn't have blamed investors for panicking when the stock was more than cut in half in one day last year after a short seller trashed the company at an investment conference. The next day, the stock rebounded by as much as 25%. Today, shares are more than double where they were after the drop. There are big opportunities in the market if you can take advantage of rattled investors giving up after getting punched in the mouth. Muhammad Ali got punched in the mouth more than once, but he still went on to become the Greatest of All Time. That's because he never panicked, was prepared, and took advantage of his opponents' mistakes. Earnings season is coming up, and that's always a time when investors get scared and dump stocks after companies don't produce stellar results. I plan on jumping on some of those names for quick profits when the stocks rebound. If you're interested in learning more, I'm hosting a free special event tomorrow at 1 p.m. ET, where I'll be sharing my absolute FAVORITE way to play earnings and potentially capitalize on "Overnight Reversals" like the three I showed you above. I hope to see you there - it's going to be a lot of fun, and I've designed it to be extremely helpful for investors of all ages and skill levels. Click here to reserve your FREE spot. Good investing, Marc |
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