Replies to post #21437 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[jenna]

Our HD straddle is very important today, here is the chart sent out earlier in the session (HD was supposed to be played with LOW)


HD Straddle for tomorrow- (intraday update today)

HD straddle but really important to also trade in the direction of the 9:40 or so pullback. We might get a big gap up and crap or a gap down and crap. The last possibility is the gap up and snap, which I don't really expect however the 37.50 calls look okay. If you shorted HD with LOW as we said to watch them together support was at 35. (HD has support at 35) and that is where the move might begin to upside.

This chart was significant, sent in the morning session, (last quarter's move in HD) and we sent it today to emphasize the transitory nature of the earnings report. Even a good report can be a catalyst for a gap 'n crap (we had TGT a few days back) but if the report is good, there is always a chance for a recovery. Last quarter HD recovered a bit the next session, today LOW had a recovery off a mini double bottom and break of the declining 20 ma to the upside(which was once again shortable at the mini double top 2 hours later) Ultimately though LOW should continue down and fare about as well as PNRA did (one dead cat bounce day after the initial crash and then continued downside which was confirmed today in a rather wide range BEARISH ENGULFING). OUR POINT IS THAT once they GAP DOWN and CRAP their upside is damaged severely for the future.