Earnings Don’t Move Stocks – Supply & Demand Does | Fundamental Analysis Exposed

Every three months, stock traders panic. Earnings season arrives… Twitter explodes, CNBC screams, and retail traders freeze.
But here’s the uncomfortable truth: earnings don’t move markets — supply and demand does.
Today I’m going to prove it using the Magnificent Seven (top seven US stocks)… and I promise, the charts don’t care about the news.

Introduction – Why Traders Fear Earnings (And Why They Shouldn’t)

One of the biggest fears for stock traders — especially those learning to trade stocks — is earnings season. Every time earnings approach, the same questions appear:

• Should I close my trade?
• What if earnings are bad?
• What if the stock gaps against me?

This fear doesn’t come from price action. It comes from fundamental analysis, financial news, and media narratives. And that’s precisely the problem.

Most traders are taught that news releases for stocks drive price. In reality, news is already priced in price action, and institutions are positioned long before earnings are released.

Retail traders react. Institutions prepare—big difference.

The Fundamental Analysis Trap

Let’s be very clear:

• Fundamental analysis looks backward
• Earnings reports describe what already happened
• Institutions don’t wait for press releases — they create positions months in advance

By the time earnings are released:

• Banks already know expectations
• Funds are already positioned
• Liquidity is already sitting at the supply or demand imbalances

The news doesn’t create direction. It simply triggers volatility.

That volatility shakes out:

• intraday traders
• scalpers
• emotionally overleveraged traders

And then… price continues to do precisely what supply and demand already dictate.

The Magnificent Seven Case Study (Real Market Proof)

Let’s go back a couple of years and look at the Magnificent Seven:

• Apple
• Amazon
• Google
• Meta
• Microsoft
• Nvidia
• Tesla

Across multiple earnings cycles, something exciting — and very consistent — happened.

Scenario 1: Negative Earnings + Demand in Control

👉 Stocks rallied. Bad earnings. Bearish headlines. Analysts downgrade.

Yet price rallied. Why? Because higher-timeframe demand was in control.

Institutions didn’t care about the news. They cared about where liquidity was sitting.

Scenario 2: Negative Earnings + Supply in Control

👉 Stocks dropped. Same bad news. Same headlines. Same fear. But this time, price dropped exactly as expected.

Why? Because supply was already in control on the larger timeframe.

The news didn’t cause the move — it simply accelerated what was already inevitable.

The Truth About News Releases and Price Action

Let’s say this clearly, because this is one of the most important lessons when you learn to trade stocks: News releases do not change supply and demand.

They only:

• Inject volatility
• Create liquidity
• Give institutions better fills

That’s it. Price moves from imbalance to imbalance, not from headline to headline.

Why Short-Term Traders Fear Earnings

Now, here’s where confusion happens.

Most traders:

• Trade short-term stock strategies
• Trade intraday stock strategies
• Use tight stops
• Rely on indicators

So when earnings hit:

• Spreads widen
• Volatility explodes
• sSops get wiped
• Emotions go wild

This creates the illusion that: Earnings are dangerous. That’s a huge difference.

Swing trading and position trading based on weekly and monthly supply and demand are entirely unaffected by earnings noise.

Institutions Are Early — Retail Is Late

Institutions don’t:

• Wait for earnings
• React to headlines
• Chase candles

They accumulate at demand. They distribute at supply. When earnings are released, retail traders rush in after the move has already started.

That’s why:

• Gaps happen
• Fake breakouts appear
• Emotional trades fail

By the time the news is public…the smart money is already positioned.

The Set & Forget Stock Trading Perspective

At Set & Forget Trading Academy, I ignore:

• Earnings releases
• Economic calendars
• Analyst opinions
• Media noise

I focus on:

• Supply and demand imbalances
• Higher timeframe context
• Clean price action
• Patience

Trading is not about reacting. It’s about waiting.

And yes — waiting is boring. But boredom is far cheaper than fear 😄

Final Takeaway

If you remember only one thing from this video, let it be this:

News is not a driver — it’s an excuse. Supply and demand is the real engine behind every stock move.

Once you truly understand that:

• Earnings stop being scary
• Charts become clear
• Emotions fade
• Patience becomes your edge

And that’s when trading finally starts to make sense.