Earnings Per Share Surprise Trader

Investments should be made in securities of companies that have particularly surprised with their most recent quarterly results. In my opinion, the expected future income of the company would also rise after a positive surprise. This might lead to other market participants who rate a company with the discounted cash flow method of future earnings rating it as cheap as a result and buy stocks of this company, which could in turn push up the price. One should also count on a positive surprise being followed by further positive surprises. In special market situations, short ETFs are to be used to protect and increase returns.