Q1 earnings season had some real blowouts that caught the market off guard.
$SanDisk Corp.(SNDK)$ – up 620%
$Rackspace Technology(RXT)$ – up 470%
$Hyliion Holdings Corp.(HYLN)$ – up 307%
$Wolfspeed Inc.(WOLF)$ – up 275%
$DigitalOcean Holdings, Inc.(DOCN)$ – up 271%
The lesson I see is that when a company beats, raises guidance, or crushes demand expectations, the first big gap up is rarely the last. The price often consolidates into a tight base after the initial move. The best entry point might be the breakout continuation from that base. Stocks that hold their gains and stay above key levels often become multi-leg winners. This is where fortune favors the prepared trader.
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