In this clip from The Macro ShowKeith McCullough explains how he manages risk in earnings season, using Hedgeye’s proprietary signals on two stocks as an example.

On DraftKings (DKNG), analyst Sean Jenkins and McCullough’s signal were both bullish.

On Roku (ROKU), analyst Andrew Freedman was bullish, but the Hedgeye signal was bearish.

The signal proved to be correct, with DraftKings up on the day and Roku hit hard after both companies reported on Friday morning.

“When something’s bullish, and it’s confirming from both the analyst and the signal into an event, I would sell some because it’s at the top end of the range,” says Hedgeye’s CEO.

How McCullough Manages Risk Entering Earnings Events - TMS Banner