Market remains in an uptrend, albeit under pressure with several distribution days(read IBD)on each exchange.Futures up today, but that means nothing.However, if we do have an up day, Wednesday probably is RED-the day of earnings.Might effect the move, especially if it's down.Big move expected of course-down would be bigger than up though.Short squeeze overrated IMO.
I think that the key to guessing SODA's move after earnings is the volume of trading. I want to see very small volume through today with a slight upward price bias.
Then, when earnings are announced, we can see a short covering bonanza for the longs, up to the low $40's.
One has to believe that SODA management learned a valuable lesson before and they will not repeat that debaucle. I'm guessing that Birnbaum has been practicing in front of a mirror.
How about you?
I like a low volume-yes.Also, expect scared longs to sell or lighten ahead of earnings.As I see it(I'm long-just not as much as I once was:), the acquisition, beating what WAS a really good report last time, irrational expectations and a broken momo stock(even though, although it got ahead of itself, Birnbaum fumbled at the goalline)are the WALL OF WORRY for SODA.
The best stocks to trade are stocks that go up when the market is down. Also, when a company releases earnings more so than not if the earning are very good the stock will go up regardless of what the overall market is doing. That is why I love Earnings season. A good rule is to never hold into earning. Wait until they come out then find your entry point. You could miss a big move but, you could also get hurt really bas as well. If you hold into earnings you might as well go to Vegas and put your money on black or red....
Soda has a history of not always following the market. Just the other week on a Thur. the market was up 400 points and soda was flat. The very next day the market was flat or down and soda was up 15%.