The reason is that the earning report is the end of CMG's darling status. One has to have this darling status, once you lose your darling status, you will no longer have the privilege of keep going up. A lot of smart money wait for the turning point to exit because if CMG is still a darling, it will keep going up and the smart money will not give up more gains, people are greedy. Once the music stops, they will run for the exist to lock in the gain or worse, shoot the dog who drop in the water.
Great explanation! So accurate. Retail investors keep hoping for the stock to go back up not realizing that you need more buyers than sellers to do that. At this point it is too late, seller pressure will be greater than buying pressure. No real buybacks or dividends to support the stock.