July 23, 2026
By Peter Bower
There is an enforced quiet period before a public company announces its earnings. This is to avoid inadvertent early release of pertinent information. It usually lasts two to four weeks. Once the earnings are announced, it is over. This also coincides with the blackout period for stock repurchases. These are also suspended until the earnings report is released.
The Lonely Bull and his partner have noticed that individual stock volatility increases during these periods. This makes sense because of the curtailment of stock buybacks. Hedge funds are very aware and see opportunities to benefit. Short selling strategies and high-frequency traders jump on any chance to drive a trend. Once the quiet and blackout periods are over, trading tends to return to normal patterns.
Assuming that stock movements just before earnings releases tell you something about what will be announced is often wrong. These more often reflect professional trading. Don’t fall for what may be a false signal. Riverplace Capital is an investor, not a trader. Therefore, we wait for real news, not conjecture. Don’t be rocked and rolled during quiet periods. Take a longer view and stay steady my friends.
-The Lonely Bull
