If Weibo's wave-train continues, it's now locked and loaded. But one wonders how long can it keep following out this channel with such regularity. We'll see... This follows from my prior idea that predicted WB's down-slope we've just watched unfold...
Comment
⋅
Well, seems WB was due for a change of pattern... Might still recuperate into its sine-wave pattern.
At least I saved face somewhat in saying the best argument might be that WB had been so regular "it's time for a change," because lo and behold, that's exactly what happened... WB has totally jumped off its once-tight track and has been bombing pathetically despite a decent earnings report...
As of this writing, it looks like it could close above ~120.30 today which I think is an important line of resistance. We might see a bounce! Not sure if it would punch through the channel's bottom, though.
iGoddard
⋅
@isosphere, and it popped this morning, but at this moment is tanking back down. Of late it's a lot like a bird, jumping up hoping to fly only to fall down again.
At least there the slightest upward trend:
iGoddard
⋅
Note how NVDA (orange trend) is tracking virtually the same course:
It's probably common in the tech sector, I guess WB falls therein.
iGoddard
⋅
@isosphere, WB has climbed $11 in two days, ahead of its earnings report late today, after hours. Of course you never know what that's gunna go, but it looks like either anticipation or maybe insider positioning. Another hot stock right now is NOC, which rose $12 yesterday.
isosphere
⋅
@iGoddard, wow, WB blew through that same $120 resistance like it didn't exist. Might bounce off its channel a bit first. It's down 6% pre-market, looks like it wants to test that $120 level again.
NOC is probably jumping on the US pulling out of the Iran deal yesterday.
iGoddard
⋅
@isosphere, What's up with the pre-market drop? Apparently Weibo released their earnings report and its great
But then there's been a lot of counterintuitive earnings responses. On NOC, yes, and Goldman Sachs added it to their conviction list.
isosphere
⋅
@iGoddard, based on nasdaq.com/earnings/report/wb expected earnings were $0.42 EPS (not guidance, analyst expectations). $0.50 is definitely a beat. If you look at the chart of EPS estimate v. actual (ca.finance.yahoo.com/quote/WB/) you can see an acceleration in the spread between the two. This earnings release has a very narrow difference between expected and actual. Maybe that acceleration was getting priced in for all future earnings.
iGoddard
⋅
Ya, that might be it, the plummet is correcting for the loss of that acceleration. So I wonder where this leaves the future of WB, bail out or hold out hope? Then who knows, it might turn around later today.
iGoddard
⋅
NOC shows pre-market vigor, up $1.7, with a high of $10 up!
It's a "demand curve" chart for WB. Generally speaking, higher price should mean lower volume based on a supply/demand basis (at least for physical items, who knows how well it applies to stocks).
Right now we have WB trading at a high price with high volume, meaning there is hot demand for it. This chart uses weekly averages, if you use daily data it is not nearly as clean but we're still in a high volume, high price region.