“Electric” Action:
This earnings season it is fair to say has seen its fair share of disappointments. At least in reactions, and that is really all that should matter to those who follow PRICE. Sure there will be some dislocations, but those will often be evident after the fact with a technical catalyst that lets one catch a falling knife with some risk/reward parameters. Leaders such as EBAY were slammed Thursday by 8% and this looks like a classic take the stairs up and the elevator down (the fact that this was lower 10 of the last 11 sessions coming into earnings did not matter). This has an RSI above 80 less than 2 months ago and today was nearly a teenager. SN is another example and this met its measured move to 114 from a bull flag breakout almost precisely and in one day is back to testing the move. Below is the daily chart of TSLA and it seems like a year ago the euphoria surrounding the earnings reaction on 10/24, screaming higher by 22%. It is down 7% this week heading into Friday and there is no reason to be a hero here. Wait until this can clear the ascending triangle of 270. It is now below the inverse head and shoulders pivot of 260 on the WEEKLY chart.