Pre-earnings announcement drift.

Often you see a stock starts rallying even there is no news. In such cases look for earnings due date. A stock will start rallying 2 to 3 weeks before earnings. The phenomenon is known pre-earnings announcement drift.

These are usually stocks will good growth rate i.e. companies where EPS and sales are in double or triple digits. Now if you get into such stocks and a stocks rallies 10 to 20% before earnings date, make sure you book your profits before earnings are released.

Last week there were three such examples.

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