Bears were left frustrated Wednesday as Action Alerts PLUS portfolio stock Twitter (TWTR) shrugged off a crummy earnings reports and rallied back to within $0.50 of its pre-earnings, regular session close. Unfortunately, the stock is still trading within our $28.50-$31.50 channel. So while the stock is back on the trading watchlist, we need to proceed with caution until we get a close above the channel high.
One of Wednesday evening's biggest losers was camera-on-a-stick maker GoPro (GPRO). Without getting into my opinion of the company's product, just know the stock was trading at a post-IPO all-time low during Wednesday's after-hours session. And as we've discussed in prior Trader Daily notes, stocks at all-time highs are not bearish, and those hitting new lows are not bullish.
Another earnings-related loser during Wednesday's after-hours session was Buffalo Wild Wings (BWLD). The stock was hit hard following the earnings release, trading as low as $156. A close under $149 would amount to a major new swing low, and likely trap the stock in a new bear market.
First Solar (FSLR) reports after the close Thursday, and like TWTR and Apple (AAPL), it too is stuck in a channel. Unfortunately, FSLR's channel is quite large. In a nutshell, bulls need the stock above $53.50, while bears want it under $40.25. Given that all short, intermediate and higher timeframe moving averages have essentially flat-lined, traders have little choice but to wait for price to tell us what to do.
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