record earnings release. inreased guidance and the stock goes down on light volume. Looks like major down day tomorrow. Why would someone be selling the shares now. It went up all day long. any indicator or ratio which predicted this downturn??
I use point-and-figure charts. CAI gave warning signs in the $63-64 area when it gave up more than 50% of its previous X column move. It then gave a clear sell signal at $58, where my stop was hit. It retraced back to the $62 box, but again reversed down to make a lower top, a clear signal to get out. Supply and demand relationships never lie--message boards and analyst opinions usually do.
Still does not explain. If there were so many shares to be sold, why wait till earnings date. sell earlier, when the price is higher. the stock price was significantly higher and the seller would have made more money. Now there is no point selling, so why would there be so many sellers. Bottom line tomorrow we will see the real direction.
They only met earnings estimate. They adjusted earnings upward for the year, but the top range of that upward adjustment only meets estimates for the year of 2.75. So all the momentum investors in this stock are bailing, as there doesn't seem to be any more upside until at least when the market revereses sentiment in a big way.