Yulia Slavina

Steve Burns: Focus on how much of the earnings gap a stock maintains

Steve Burns: Focus on how much of the earnings gap a stock maintains
Earnings gap retention in focus

Steve Burns, founder at New Trader University, emphasized that after a company reports earnings, it is important to observe not only the initial size of a stock's gap but also how much of that gap remains by the end of the session. Burns pointed out that a stock which gaps 12 percent on earnings and retains 11 percent of that move has processed new information very differently from one that finishes the day up only 2 percent.

Burns has previously questioned which stock could achieve performance similar to Nvidia, citing factors like growth and leadership in an earlier article. He has also described how traders use R-multiples to evaluate trades in relation to risk in a separate note. These topics build on his broader commentary on trading strategies and outcomes.

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