3 charts that suggest TFSM is heading lower
Identifying patterns in the
marketplace is key to active stock trading success. When you see
certain things happen over and over again, it’s generally a good idea to at
least entertain the possibility that they could occur again.
That’s exactly the situation we face with TFSM (24/7 Real Media) as it heads
into earnings Wednesday after the bell. To get a better idea of what to expect,
just look at how others in the industry (internet advertising) have performed
since their earnings reports this season (note that earnings releases are
highlighted in yellow on charts):
First, there was
(
GOOG |
Quote |
Chart |
News |
PowerRating) — Google…”ouch”:
Next up was
(
YHOO |
Quote |
Chart |
News |
PowerRating) –Yahoo!…”ouch”:
And then just Tuesday we had
(
VCLK |
Quote |
Chart |
News |
PowerRating) — Valueclick…”ouch”:
And now, it’s
(
TFSM |
Quote |
Chart |
News |
PowerRating) 24/7 Real Media’s turn….will it be
another “ouch”?
Now we’ve got a stock that just broke its uptrend that is
about to report earnings after almost every big player in its industry
disappointed Wall St. with their reports. Not exactly an exciting scenario for
the short term trader.
Personally, I think 24/7 is an awesome company that could really make waves in
the future of online advertising. Investors buying on pullbacks should be full
steam ahead and short sellers should have their heads examined. Who
knows…maybe this will be the company that bucks the trend, beats and guides
higher–but trading is about risk and reward, and there are just far too many
red flags on TFSM to justify a long position going into this earnings release.
Andy Swan created and
co-founded DaytradeTeam five years ago on a principle of empowering
individual stock and options traders with the techniques and analysis methods
typically reserved for elite professionals. His expertise in technical analysis
and commitment to educating members earned DaytradeTeam a top-ranking among
advisory services for several years.