Dozens of companies will announce earnings this week, with more than 50 companies in the S&P 500 set to report.

This will make for lots of big moves in the market this week. We’ve done a good job on any given week spotting stocks set for those one-day pops.

I don’t mind missing out on those single-day moves as long as we can play the trends that they set up.

That’s just what we saw in last week’s Earnings Edge stocks, Delta Airlines and CarMax.

Both stocks moved at least 5% on the day they announced earnings, with Delta shares rising 5%, and CarMax shares falling nearly 10%.

I think this is just the start of an even longer move for these stocks, and you can expect it to play out in the same direction as the initial pop.

I believe today’s two stocks are due for an even greater move on earnings day. But whatever happens, it will set up a trend that will dominate the stock’s trend.

Here’s what I’m watching…

Earnings Edge Stock No. 1: Lakeland Industries Inc. (Nasdaq: LAKE)

Earnings Announcement Date: Monday, after the close.

Expectations: Earnings at $0.37 per share. Revenue at $29 million.

Average Analyst Rating: Buy.

This microcap stock, with just a $144 million market cap, soared after the pandemic.


Because the company makes protective clothing and accessories, such as … everything. It offers masks and a full suit to keep any infectious diseases out. Countries and businesses have spent small fortunes loading up on this gear since the pandemic. The question now is how long that can last.

That’s exactly what we see on its price chart.

LAKE’s Falling Wedge


We have a falling wedge pattern on our hands with LAKE.

LAKE trades within a closing support (in green) and resistance (in red), setting up for a breakout in either direction after earnings this week.

I’ll be waiting to see what happens. The stock is known for volatility, so whenever shares break one of those key levels, expect a sharp move in the same direction.

Earnings Edge Stock No. 2: Snap-On Inc. (NYSE: SNA)

Earnings Announcement Date: Thursday, before the open.

Expectations: Earnings at $3.65 per share. Revenue at $1.04 billion.

Average Analyst Rating: Hold.

This company makes hand tools like wrenches and sockets. It sounds like a boring business. But its price chart says otherwise.

After the sharp drop from the pandemic in 2020, the stock surged higher, jumping more than 150% from the lows.

It experienced a little dip but has traded in a narrow downward price channel for a year now.

That’s a long time when you see how tight this channel is.

SNA Is Coiled Like a Snake


I’ve seen stocks trend for years, but in  much wider bands than this.

Between the support in green and resistance in red, the price range is roughly 10% of where the stock is trading. That means it swings to the upside and downside in this tight range, seeing 10% swings every other week.

It’s a wild price chart.

And from the chart, it is just screaming that a breakout is coming.

When stocks do this, like a snake about to strike, they coil up as investors weigh how they want to trade them. Then, when a big event lands, like earnings, it’s off to the races.

We just don’t know which way all that will fall before it happens.

All I know is we can expect a big move from SNA in the weeks ahead.

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