One Way To Trade An Earnings Warning
The major indices might not be
spelling it quite yet, but in many individual issues it’s fast becoming my
favorite time to play–it’s called reversal time.
If you blinked you might have missed it, actually you probably did–because our
TM backend for alerts was on the blink for a short while this morning. But, that
just means we try to carry over what were supposed to be Alert write ups on The
Wire, and put them in our member chat when we see something interesting
happening.
…and in today’s trade, that was the sequence of
events that occurred in j2 Global
(
JCOM |
Quote |
Chart |
News |
PowerRating).
Some ‘news’ out of the company about guiding
lower thrust the Low RS issue even lower–giving me the perfect opportunity to
look for a potential long reversal.
Reversal Zone Setup
j2 Global
(
JCOM |
Quote |
Chart |
News |
PowerRating) issued an earnings
warning this morning, sending the stock down to its current level of 21.93, down
3.30. This action has the stock putting in a potential double bottom on the
daily chart, against Fibonacci supports.
Â
I’ve been quite cautious as of late, but when I see something like this
setting up, I know that once again, the present is definitely giving us a
wonderful gift.
Â
Chris Tyler