Algorithmic Trading and Earnings Expectations

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Algo trading algorithms quickly analyze and compare earnings numbers with historical averages at sector and subsector levels, making a penny beat insignificant when the average beat is much larger. This is why stocks react swiftly to earnings as algos use companies' earnings history to assess against long-term averages, prompting the question about the continual overestimation of annual estimates.

On this TCAF Tuesday, Josh Brown is joined by Nick Colas and Jessica Rabe, co-founders of DataTrek Research, to discuss the market making new highs, "sell in May and go away", the longest-running unsolved mystery on Wall Street, earnings, venture capital, and more! Then, at 37:49, hear an all-new episode of What Are Your Thoughts with Josh and Michael Batnick!

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