By Barrie Einarson

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Today I want to walk you through a trade that caught my attention in the pre-market—Best Buy ($BBY). This was an earnings play, and as always, earnings season gives us some fantastic opportunities if we stay nimble and let the charts lead the way. To Subscribe: https://go.trade-ideas.com/SHQ
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📉 Initial Read: Weakness in the Pre-Market

Right out of the gate, BBY was trading lower in the pre-market. Volume was light, and my initial bias was to the short side. Looking at the daily chart, you could see why—it had plenty of room to fall, with little immediate support underneath. That’s a classic red flag for weakness, especially on an earnings miss or muted guidance.

📊 Letting the Chart Talk

But here’s where this trade became great—and educational. Once the market opened, BBY did something unexpected: it bounced. Not only did it find footing, but it also formed a bull flag on the 5-minute chart. That’s a high-probability continuation pattern, and it reversed the morning’s sentiment.

Instead of sticking with a bearish thesis, I flipped my bias and went long. That’s the takeaway here: don’t marry your bias. Let the price action guide you.

✅ Execution & Takeaway

I caught a piece of the upside move as BBY broke out of that bull flag and rode higher. This was a textbook case of adaptability and reacting to what the market is telling you, not what you want it to say.

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Stay flexible. Follow the chart. And don’t be afraid to switch gears when the setup demands it.

Catch you all tomorrow in the room.