I am a big believer that if a company beats earnings they will continue to do so because there is a nice trend happening (strong product, execution, advantage, demand etc). likewise, when they start misses they will keep missing like AAPL did for the last 3 qtrs and look at that stock. I am pretty sure ULTA will continue to miss until expectations are very low -- its not low when a monkey analyst comes out with a buy rating and 100+ target price
a oversold bounce in ULTA will set up the next shorting event. for shorts, pigs get slaughtered here.
Do you have any price targets in mind? I'm looking at the two yr chart and think 78 is all there will be to the up and 50 to the down. Scared to short as a bounce should come but the volume suggests more downside to me. Interested in your thoughts. After one of these days I question my own thinking. I decided not to buy puts yesterday as they confirmed the quarter and 2nd qtr analyst quotes looked low enough for a usual slow quarter. Painfully WRONG!
well I am short from 89 and 92 and I wont cover until I see buying which I haven't yet. need a reversal day first even if we are way oversold.
you want to short as the stock bounces and moves closer to the 20dma but pref to the 50dma or at the high 78 to 80 resistance zone -- this depends on the mkt too. if the mkt tanks then u want to be more aggressive getting in on short side.
look at BSFT as another example. be patient, I am looking to hit BSFT in the high 28s or if the gap fills or at the 50dma/20dma. very dependent on how the mkt behaves too