NYSE:LSPD   Lightspeed Commerce Inc. Subordinate Voting Shares
LSPD is going to report lower quarterly revenues than last month in next week's earnings results, but its stock is in a sympathy move upward with the rest of the market bounce today. This is a prime example of the need to wait for confirmation of a bottom developing. As always, one up day is not a reversal. It may be the start of a bottom formation, but bottoms can take months to get hammered out.

This stock's current situation is a good reason to incorporate some fundamental analysis into your technical studies. There are just a few key things to check. Do yourself a favor and learn to do your own research; upgrades, downgrades and all that jazz is market manipulation. Go look at the press release of the last earnings report yourself to see what the company guided for the upcoming report. Nasdaq.com is a good site for this.

I wouldn't short here because it's nearing the end of the downtrend now.

I wouldn't buy yet because there's a little further to go before the strong support is reached and a bottom can take a while to develop.

PLUS, the knee-jerk crowd is bound to be surprised on May 19th. Meanwhile, the institutions have already accounted for a rough 4th quarter for this stock, but they also know that annual revenues have doubled this year.

LSPD is one for a watchlist to wait until the bottom is confirmed.

Martha Stokes, CMT

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