Hey, Ross here:
Earnings season has begun.
And despite all the worries about the economy, the consumer, and the potential AI bubble…
As today’s chart shows, this key driver of stock prices is still doing well.
Chart of the Day
This chart shows the number of S&P 500 companies issuing positive earnings guidance by quarter.
The horizontal dotted lines show the five and ten-year averages for the number of companies issuing positive guidance.
As you can see for the past three quarters – including the fourth quarter of 2025, which is the current earnings season…
Positive guidance has been reliably above the five and ten-year averages.
And when you look at the flip side – the number of companies issuing negative earnings guidance…
You’ll find a congruent picture, with those numbers being lower than the average.
To sum it up, corporate earnings are strong.
In the longer term, this will help support stock prices.
In the shorter term – it’s a fast-moving opportunity.
I explain more below.
Insight of the Day
Strong earnings + weak sentiment = overreaction opportunity
Right now, sentiment around the economy and consumer spending is pretty negative…
Meaning investors tend to “overreact” to earnings.
What that means is that when earnings fall even a little below expectations…
Stocks can sell off heavily – way out of line with reality.
But that earnings overreaction is an opportunity…
Especially for the corporate insiders – high-ranking executives like CEOs, CFOs, and Directors – exploiting an SEC loophole to snap up their own company shares.
It happened to Alumis Inc. (ALMS) back in mid-November last year.
It sold off heavily after earnings…
But just a few days later, several key insiders bought in big.
I noticed, and issued a buy recommendation to my Insider Effect members.
Six weeks later, the company announced successful Phase 3 clinical trial results for its plaque psoriasis drug…
And the stock exploded.
Members had the chance to lock in nearly 250% gains on the stock itself…
And over 1,250% on the options – all in less than two months.
That’s the power of following the insiders taking advantage of these earnings overreactions.
And later this morning at 11 a.m. Eastern…
I’m going to walk you through exactly how this insider strategy works step-by-step…
So that you too will know how to profit from these overreactions.
I must warn you though…
Not all insiders are created equal…
And following the wrong insiders could put you on the wrong side of these overreactions instead.
After my live insider walkthrough later this morning, that won’t happen to you…
Because I’ll show you the exact type of insider buying you want to follow – and the kind you want to avoid at all costs.
So just click here to guarantee your free seat if you haven’t already…
And I’ll see you in a little while at 11 a.m. ET.
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: https://apps.apple.com/us/app/goto/id1465614785
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Customer Story of the Day
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Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
