Why We Took 4.32% Profits on CoStar (CSGP) Before Earnings—And Why We’re Looking to Buy It Right Back

Earnings season is in full swing, and if there’s one rule we stick to in our trading room, it’s this: manage risk first, ask questions later.

Tonight, we’re recapping a tactical win on CoStar Group (CSGP), reviewing our recent short-side exit in semiconductors, and laying out the macro factors shaping our game plan for the rest of this massive earnings week.

1. Taking Profit on CSGP: Locking in 4.32%

We opened our position in CoStar Group back on June 1st. Heading into tonight’s earnings report, we didn’t have a massive profit cushion to absorb a post-earnings surprise—and trading earnings blindly without a moat is a quick way to give back gains.

So, we executed our playbook: we took over three-quarters of our position off the table to book a 4.32% profit.

The Post-Earnings Picture

As it turned out, taking profits was the right call:

• The Numbers: CSGP delivered a mixed report—forward revenue guidance missed expectations slightly, though EPS holding steady.
• The Reaction: Shares sold off over 15% in the after-hours session.
• The Red Flag: Right before the print, Wall Street firms stepped in raising guidance. To a contrarian eye, that smelled like a classic pump into earnings.

Why We Have an Order to Buy It Back

Though the stock hit new 52-week lows after hours, look at the big picture: CSGP is down roughly 68.5% from its March high. On a weekly chart, stochastics are forming higher lows, and the ADX signal is signaling an extreme, unsustainable move.

A 15% overnight drop on a guidance tweak creates a major mispricing. We’ve placed a limit order to reload the position down near $25–$26—buying back the exact shares we sold, but at a 15% discount. If the order fills and we print a daily bullish reversal bar, we’ll look to get even more aggressive. If it fails below $26, we stay patient and wait for key support.

2. Closing Shorts: Respecting Support in Semiconductors

Earlier this week, we also wrapped up two short trades in the semiconductor sector.

When you’re shorting a market or sector that hasn’t officially broken down into a full-scale correction, you don’t overstay your welcome. The moment price action hits target support levels, you execute:

1. Book your profits.
2. Step aside to cash.
3. Wait for the market to signal its next clear direction.

Right now, watching from cash is the highest-probability play while tech earns its keep.

3. Market Scan: Visa, Big Tech, and Global Macro Shift

It’s not just CoStar making moves tonight. Here is what else is on our radar:

• Visa (V): Despite beating on both the top and bottom line, Visa stock is meeting a wall of silence. When a company puts up strong headline numbers and the market responds with crickets, be careful. We are passing on V for now.
• The Mega-Cap Gauntlet: Tomorrow brings a stacked lineup with SoFi and Procter & Gamble in the pre-market, followed by Microsoft, Meta, Qualcomm, ARM, and Chipotle after the bell.
• Macro & Fed Watch: Fed expectations shifted rapidly this evening, with rate hike expectations ticking back up. Meanwhile, oil jumped back over $80/bbl alongside rising Middle East tensions and near-zero traffic through the Strait of Hormuz.

Trader’s Take: With major earnings hits and macro volatility colliding, disciplined execution beats prediction every single time.

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