I think it is safe to say that the long awaited pullback is finally underway. So far the decline in the Qs appears to be choppy and not impulsive, so we may expect that the pullback will not be too severe, although that could change. At the moment I am still expecting this pullback to bottom around the 14th, next Friday, but if it does extend, probably no later than the end of August.
The best laid plans of stock market technical analysts cannot alter the reality of price movement. Today TNDM is getting hammered even though it beat estimates and raised guidance. Clearly the street was expecting more. This brings either the flat correction scenario or a completed 5th wave count to the forefront. I was stopped out with a 0.5% hit to my account, which is less than the 1.5% max that I allow. In two trades in TNDM this year, I am down 1.22%. I will be looking to trade this stock again, and I will take some time to explain why in a future post.
We are now approaching the uncle point for my bearish trade in gold. If it is going to go down in earnest, it must begin to do so now. A pullback and breakout from here would be bullish overall, but it is not clear that it is as bullish as many think.
Let's see how the market reacts to the employment report tomorrow before making any projections on the pullback.
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4 comments:
Think it comes down to which we do first take out today's intraday highs or lows of the recent consolidation first. However, merely taking out today's meager highs so far doesn't turn up daily indicators to give a "Buy".
Some beautiful bearish hourly tech stk charts.
Regards,
dave
EW irregular top in SPX UNconfirmed by Naz/Q's
This is going to be FUN !!
Regards,
dave
"Today TNDM is getting hammered even though it beat estimates and raised guidance."
D#mned if they did & d#mned if they didn't (have good results):
Monday, STEC announced blowout earnings after the close AND simultaneously announced a secondary offering of 7.5 mln shares of common stock by its CEO & Pres.
The company announced great results & shareholders STILL couldn't take advantage & sell as profitably due to the timing of the announcement of the secondary offering by two EMPLOYEES. If they had held off by half a day, shareholders would have at least had a chance to take advantage of the good earnings the next morning.
STEC closed @ 35.5 Monday (before the announcement); opened the next morning @ 32.22; Fri's low 28.35.
Craig, don't you think shareholders (i prefer the word "owners", which i am NOT) should say "Thanks, fellows !"
Regards,
dave
This is one reason that I no longer pay attention to earnings dates prior to placing a trade. Since the reaction can't be determined in advance, it is statistically more favorable to trade price without worrying about the reaction. Over time, one should have as many favorable reactions as unfavorable. Just sell the losers, and hold the winners.
With regard to STEC, I think it will build a new base here and move higher in a few weeks.
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