The miss on earnings caused a significant gap down of -4% and -2ATR. Directly when the market opened, NEE was extremely weak and sold off without a proper PB. Then it reclaimed VWAP on volume. This should have been the cue for a solid EOD Trend PB opportunity, but I missed it.

1. Negative earnings
reaction.
Catalyst: Earnings miss
Setup: Negative earnings reaction
Trades: EOD Trend PB
Ticker: NEE
Date: 25-1-23

2. Bigger picture: SPY and VIX
Intraday levels SPY:
Gapping down 1%, there
was a very strong reclaim
today. Trended up from
11AM and made 1.2atr.
Closed very strong near
important 400-dollar level.
VIX level : 19
VIX closed at 19 after
popping above 20. Same as
yesterday.

3. Catalyst &
Fundamentals
Catalyst: Earnings miss, small
Setup: Negative earnings reaction
Float: 1,98B
Institutional Ownership: 80,3%
Short %: 0,92%
ATR: 1,90.
Average Daily volume (50 day): 6 million.
Daily volume: 28,5 million.
Gap%/Gap ATR: -4,65% / -2,05 ATR
RVOL: 4,86 during open.

4. Gameplan/checklist
Premarket gameplan.
Catalyst: missing earnings
Setup: Negative earnings reaction. -3.6% the miss is not that big, for the
Marketbeat consensus it’s a small win.
Technicals: Lower ATR for a higher priced stock. Not moving that much. Has been
strong but it's moving sideways mostly.
Intraday notes
-Very weak open -2ATR opening drive. Perhaps 77 could be a daily level.
Otherwise, there’s a lot of downside potential.
-High elevated volume. 4.86RVOL
-Got late locates available missed a possible trend PB. Would have been a very
aggressive one.
-Looks like it’s stalling out and forming a bottom. Might become a HTF PB.
Post market notes
-I didn’t rank the stocks, but I think I would have ranked NEE number one in terms
of potential. In hindsight it made the largest move. Weak catalyst + weak reaction
+ weak technicals + weak reaction.
-When I was ready for the 5m PB it spiked and reclaimed VWAP. Lost it out of side
and didn’t set alerts on it. Not good!

5. Daily chart

6. Technical
Analysis:
Trend PB
10m is holding below 9EMA.
5m is holding below 20EMA.
Pullback visible on multiple time
frames: 1m, 5m, 10m.
Bounce of intraday key level:
77,50
Shallow volume during PB.

7. Ideal trade management

8. What could I have done
better?
• NEE was extremely weak during the open. It was down -2.5ATR
without a proper 5m PB. I commented that such a move might be
followed by a HTF PB, because I saw that the trend was stalling out
in stead of pulling into the 5m 20EMA.
Then NEE reclaimed VWAP after a strong push. This can always
happen but doesn’t change the thesis. I was focusing on MSFT, so I
forgot about it. I did well to set alerts and focusing on not missing
playbook trades but this one got through my fingers.
• I will implement a 20PM check where I go through al my stock on
my watchlist again and review the potential playbook trades that
could unfold. Had I done this then I wouldn’t have missed it.
• I think it’s good to focus on 1 trade at the time. But when I only
have a minor partial left, I should set alerts and focus on the next
one good trade.