SG - Episodic Pivot - 2024-03-01

Sweetgreen Earnings Gap Trade Analysis:

• Gap Up: 25% after earnings
• 1-Min ORH Entry: Led to a stop-out on the same day with a 6.8% loss (LoD stop)
• ADR vs. Initial Bar: ADR was 5%, but the first 1-minute bar exceeded that, signaling high risk
• 5-Min ORH: No breakout, avoiding the loss
• Key Insight: Avoid entering an earnings gap if the initial 1-minute bar is riskier than ADR
• Delayed Earnings Play: The stock surged higher in the following weeks, offering two strong entry opportunities for a potential 40% gain

This trade highlights the importance of waiting for better setups rather than forcing an entry right after earnings.