Earnings Swing Trade Alert : PLTR

Hi there,

This is earnings week and stocks will likely make big moves - either up or down (I honestly don't know which way). But here's some news: PLTR just released earnings and is up 23% in pre-market. I rate this as a B+ Swing Trading Setup. Here's why:

Why it's a great setup:

• Breaking out to all-time highs

• SUPER GROWTH stock

• Part of the HOT AI trend

• Rule of 100 working in our favor

  • When a stock passes a round number like 100, it tends to keep running up from there

Why it's not quite an A+ setup:

• We prefer to see earnings surprises over 100% for the best earnings swing trades

• Earnings growth is slowing down (bad sign for a growth stock)

• PLTR is jumping out of an 8-week base—we usually like to see longer bases!

Trade Plan:

1. Risk Level

   • Don't risk more than 0.4-0.7% of your account

   • We save our bigger positions for A+ setups

2. Selling Strategy

   • Simple approach: Sell when it closes below the 10-Day EMA

   • Better approach:

     • Sell 1/3 at first target

     • Sell the rest at second target

Quick Update: I'm working on some helpful handbooks that I'll start including in these trade emails over the next 1-2 weeks.

As always, please manage your risk carefully and trade according to your personal strategy.

Best regards,

Valentine