I didn't duck.
I should've ducked.
Now, my beautiful looking weekly chart is in shambles. It's not ruined. We're still above support levels, however, today's entry would be far more appealing than yesterday's entry. In truth, I probably chased a little too late when considering daily movements. We've seen it in many names as of late. Watching these big tech names struggle after posting ridiculously solid earnings has been a warning sign.
Except you, Twitter (TWTR) , those results were not ridiculously good. They weren't even remotely good in the current environment.
KIRK isn't alone though in a chart breaking down.
Liquid Media (YVR) , a name I recently discussed, is now trapped under the 50-day simple moving average (SMA) and dipping into a bearish head and shoulders pattern that targets the $2 level. This is a pattern that always concerns me. It pains me to reverse course so quickly, but the near-term bearish pattern could create a better long-term entry price. If we were to rally back above $2.85 or $3.05, then the bearish technical pattern will be removed. This is purely a technical read, but bearish technical specs have been working better than bullish ones as of late, so I'm going to respect the short-term warning sign.
End of the week and end of the month, so I'll be interested to see if we get an end of the day push. We aren't at a quarter end, so I'm not putting much faith in that happening, especially for small-cap names. It seems when momentum dies in the first half of the day on small names, it stays dead throughout the afternoon. I wouldn't call today hard selling, but rather a lack of interested buyers. It's as if everyone has an NFL Draft hangover.
There's no reason to force it today. If we caught an afternoon rally, the range between 11 am and 1 pm EST has been tight enough, it will be easy to see. For something like the (SPY) , it may be easier to use the morning highs, while the iShares Russell 2000 (IWM) may require a break above the volume weighted average price (VWAP) on the 5-minute intraday chart if you're looking for an afternoon run.
I'll look for a trade or two, but I don't plan to create a stressful Friday. Next week still serves up a lot of earnings reports, so getting through the reporting season unscathed may be the best trade of all.