Google posted horrible earnings and missed estimates. Yet the post-market "rally" of 4.76% sent many traders going
"WHY!!?!?!? It Missed EARNINGS!!!!!"
"SNAP CHAT DROPPED 29% BUT WHY GOOGLE IS UP!?!?!?!?!??!?!?!?!?!?!?! ALL THE ANALYSES ARE WRONG!!!"
Let's throw some perspective in.
Let's look at Apple and Snapchat.
Apple is currently still up 16.5% from June's bottom.
Snapchat went up 36% from June's bottom before dropping 32% on earnings.
On the same account, Walmart was up 12.3% from June's bottom before crashing 8% from the slashed profit forecast.
Why didn't Google crash? It is because there was no irrational rally from Google. Price prior to earning was AT June's low. As such, when the result was bad, there is no big drop.
Google's post-market rally is still well below 115.3. There are more major resistances ahead at 119 and 122. To be a Bull, perhaps it may be safer to wait for Google to be above 122 and also some fundamental tailwind (lower inflation and easing of rate hike)
Snapchat and Walmart were delusional and irrational rallies. Market and earnings slapped some reality back into these counters.
Is the Apple rally delusional? Who knows, but even if it posts phenomenal earnings on Thursday, there may not be much more room upwards. It may even dive on good earnings as it may not be as good as the irrational rally commands.
Are you lured into this irrational rally? Did you buy any counters at the top hoping for good earnings to push it higher? Are you holding ticking timebombs?
As always DYODD
"WHY!!?!?!? It Missed EARNINGS!!!!!"
"SNAP CHAT DROPPED 29% BUT WHY GOOGLE IS UP!?!?!?!?!??!?!?!?!?!?!?! ALL THE ANALYSES ARE WRONG!!!"
Let's throw some perspective in.
Let's look at Apple and Snapchat.
Apple is currently still up 16.5% from June's bottom.
Snapchat went up 36% from June's bottom before dropping 32% on earnings.
On the same account, Walmart was up 12.3% from June's bottom before crashing 8% from the slashed profit forecast.
Why didn't Google crash? It is because there was no irrational rally from Google. Price prior to earning was AT June's low. As such, when the result was bad, there is no big drop.
Google's post-market rally is still well below 115.3. There are more major resistances ahead at 119 and 122. To be a Bull, perhaps it may be safer to wait for Google to be above 122 and also some fundamental tailwind (lower inflation and easing of rate hike)
Snapchat and Walmart were delusional and irrational rallies. Market and earnings slapped some reality back into these counters.
Is the Apple rally delusional? Who knows, but even if it posts phenomenal earnings on Thursday, there may not be much more room upwards. It may even dive on good earnings as it may not be as good as the irrational rally commands.
Are you lured into this irrational rally? Did you buy any counters at the top hoping for good earnings to push it higher? Are you holding ticking timebombs?
As always DYODD