Hey, Ross here:
Some companies are delivering just about everything investors could ask for this earnings season.
Yet their stocks are getting hammered.
With some of the biggest names in the market reporting tonight, take a look at this.
Chart of the Day
Source: @BespokeInvest
This chart tracks something it calls “Triple Plays.”
That means a company that:
- Beats Wall Street’s profit forecast
- Beats its sales forecast
- AND raises its outlook.
Basically, for a company reporting earnings, hitting a Triple Play is like hitting a home run.
The top-left panel of the chart tracks how often companies hit a Triple Play.
It’s right near the highest levels we’ve seen since the start of the October 2022 bull market.
But now look at the top-right panel, which shows the average and median stock reactions to those reports.
Both have plunged below zero.
In other words, companies delivering the vaunted Triple Play are actually seeing their stock prices fall after.
At this stage of the earnings season, that’s the weakest reaction going back to 2001.
The three smaller charts below separate the results.
From left to right, they show reactions to each element of the Triple Play – profit beats, sales beats, and higher forecasts.
Look at the far-right chart. Even raising the outlook has been met with selling.
So why does this happen?
Because of something about trading that most people still don’t quite grasp.
Insight of the Day
Trading is a “second-order” game.
“First-order” thinking looks at the business: Sales and profits are growing, so things look good.
“Second-order” thinking asks what investors already expected – and paid for.
Profits growing 20% can disappoint buyers who expected 30%.
Even beating Wall Street’s forecast may not clear the higher bar in their heads.
The Triple Play above is largely a first order phenomenon.
The fact that it’s having a negative effect on the stocks’ prices tells you what the market (not Wall Street’s forecasts) were actually expecting.
Making money in trading involves understanding and exploiting second-order effects…
Specifically, the “gap” between first-order and second-order effects.
And the traders BEST positioned to do this…
Are, in my view, the corporate insiders – high-ranking execs like CEOs and CFOs trading their own company stock.
Because they already know everything going on inside the company – far more than even the best Wall Street analyst…
So they can exploit the gap between the market’s expectations…
And what’s actually going on under the surface.
And since we’re now in the middle of the Q3 earnings season – the insiders are out in force exploiting this gap.
That’s why later today at 3 p.m. Eastern…
I’m going LIVE to show you the insider-driven earnings-season strategy my members and I have used for a decade.
I’ll also break down the technique we’ve used to identify stock moves of 287%, 527%, and even 1,091%...
And reveal the top opportunities my team is watching now.
I’ll also discuss the upcoming Big Tech earnings – Google and Microsoft today, Amazon tomorrow.
Because their AI spending plans could change expectations for businesses across the market – and set up some massive stock opportunities.
Before those numbers hit, I’ll show you how I’m positioning for different outcomes.
This is the last earnings season of 2026. The next one won’t arrive until next year.
So don’t miss your chance to see me walk you through my top earnings-season strategy LIVE.
Click here to guarantee your free seat if you haven’t already…
And I’ll see you at 3 p.m. ET today.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: apps.apple.com/us/app/goto/id1465614785
Android: play.google.com/store/search?q=goto&c=apps
Customer Story of the Day
"My experience with Trader's Agency has been stellar.
Customer Service called and we discussed the various trading groups.
The group I am currently subscribed, and others I will consider in the near future.
Ross Givens is amazing and I listen to his webinars every day! Looking forward to the Insiders Edge!!!”
Embrace the surge,
Ross Givens
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