Pradeep Bonde: How to Discover Explosive Episodic Pivots

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 Learn Pradeep’s method designed to capture rapid stock moves by significant catalysts.

What Are Episodic Pivots?

Episodic Pivots (EPs) are major shifts in a stock’s price, triggered by a game-changing event including earnings surprises, groundbreaking product launches, regulatory approvals, or industry-shifting news. When episodic pivots occur, the stock often experiences a sharp price movement, typically fueled by a surge in volume.

Once the pivotal event occurs, the stock can break out of its range and start a strong uptrend. Traders and investors look for these moments because they offer high-reward opportunities when trading alongside a new price catalyst.

Why Earnings Season is Key for Finding Episodic Pivots

Earnings season is one of the best times to spot episodic pivots because financial results can surprise the market and lead to significant price moves. When a company reports earnings that far exceed expectations, it catches investors off guard forcing them to reevaluate their opinion of the stock.

Institutional investors, hedge funds, and traders rush to take positions, leading to a breakout with a continued price advance. A prime example of an EP move occurred with Enphase Energy after an extended period of consolidation.

Symbol: ENPH
Company: Enphase Energy
Date: October 28, 2021

Click on the chart above to make it bigger.

The company delivered a high-growth earnings report that surprised the market, sending the stock higher. This type of high-growth, high-surprise earnings report often signals an episodic pivot, especially if the stock has been consolidating for a long time.

How to Find Stocks With Episodic Pivots

Finding the right stocks printing episodic pivots requires a systematic approach. By analyzing earnings reports, market reactions, institutional interest, and technical setups, you can identify high-potential opportunities before they make their big move.

Look for Game-Changing Earnings Reports:

Earnings reports are a primary driver of EPs, so it’s crucial to track them closely.

• Use screening software like Deepvue to track earnings releases in real time.
• Focus on stocks with significant EPS beats (15%+) as they attract strong buying interest.
• Check for a consolidation phase – Stocks that have been trading sideways for months are more likely to make a powerful move when a catalyst appears.

Analyze Market Reaction to Earnings:

Not all strong earnings reports lead to an EP move – The market’s reaction is key to confirming whether a stock has real momentum.

• Positive After-Hours Movement: If the stock reacts strongly right after earnings, it signals institutional buying.
• Volume Spike: A stock moving with at least 2-3x its average volume suggests serious investor interest.

Institutional Ownership & Analyst Price Target Increases:

Institutional investors play a big role in sustaining an EP rally. Stocks with increasing institutional ownership tend to hold their gains longer.

• Stocks with growing institutional ownership tend to sustain rallies.
• A stock with multiple analyst price target raises is a strong signal.

Technical Confirmation – Breakouts From Bases:

A true EP setup isn’t just about earnings and fundamentals – it also needs technical confirmation.

• Stocks that break out of a long-term base with high volume have a higher probability of sustained gains.
• Check weekly and daily charts to see if the stock is clearing resistance.

Examples of Explosive Episodic Pivot Moves

Several stocks in the past have demonstrated massive gains following EP setups:

Symbol: FSLY
Company: Fastly Inc.
Date: May 7, 2020

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Fastly had been consolidating for eight months before reporting exceptional growth. The stock surged 200% in just 43 days after its EP close, demonstrating the power of a strong earnings-driven pivot.

Symbol: GRWG
Company: Growgeneration Corp.
Date: August 13, 2020

Click on the chart above to make it bigger.

Catching the open on GRWG after its EP move resulted in a 100% gain in just four days. Over the next six months, the stock advanced nearly 600%, showing the explosive potential of well-timed EP trades.

How to Consistently Find Episodic Pivot Stocks

To successfully trade episodic pivots, you need a consistent strategy that helps you identify and execute trades efficiently. Here’s a step-by-step approach:

Scan Earnings Reports Daily

• Focus on earnings beats of 20%+ – The bigger the beat, the stronger the potential for an EP move.
• Prioritize revenue and EPS growth – Stocks with accelerating growth have the highest chance of sustained rallies.

Monitor Pre-Market & After-Hours Moves

• Watch for stocks gapping up 10%+ post-earnings – A strong reaction indicates that the market sees earnings as a major catalyst.
• Confirm with volume spikes – High volume in pre-market or after-hours trading signals strong institutional interest.

Use Technical Analysis for Entry Timing

• Look for breakouts from long-term bases – The best EP trades occur when a stock clears a major resistance level.
• Confirm high relative volume – A breakout should be supported by 2-3x its normal trading volume.

Track Analyst Ratings & Institutional Ownership

• Watch for multiple price target raises – The more analysts raise their targets, the stronger the confidence in the stock’s future.
• Check institutional accumulation – Stocks with increasing institutional ownership tend to sustain their moves longer.

Achieve Episodic Pivot Mastery 👇

Get instant access

 Learn Pradeep’s method designed to capture rapid stock moves by significant catalysts.

Final Thoughts: Capitalizing on Episodic Pivots

If you’re looking to find stocks that can make explosive moves, episodic pivots offer a high probability strategy. By focusing on earnings surprises, volume breakouts, and analyst sentiment, you can identify and enter high-growth stocks before they take off.

Every earnings season brings new opportunities. If you consistently track EP setups and follow a structured approach, you’ll be in a great position to catch the next big winner.

Whether you’re a trader or an investor, understanding EPs can give you a powerful edge in the market.