E Chart Of The Day: Weibo Corporation

Let's take a look at WB as today's action should not come as a surprise.

If you've been on this list for any amount of time you know I am not a big fan of three things. One is chasing stocks, another is buying breakouts in extended market climates AFTER a run in the overall market has been made. And lastly trading ahead of reactionary news-driven events like earnings. WB is another example of exactly why.   

This morning WB reacted to earnings and it wasn't pretty; but what does one expect when you buy breakouts AFTER an issue has been running going into earnings? That in itself is just foolish, as earnings reports are 50/50 reactionary odds and NOT investing.

There is more to breakouts than just BLINDLY buying them, you know. Besides, that breakout took place AFTER the stock ran from $40 to $56 and buying the breakout was doing so AFTER it ran 40% in 2 months!

Now that all said, this brings up the question of what, if anything should we be thinking about IF we were to consider going long at some point. Well that's where the chart below comes into play. 

Disclosure: None.

Disclaimer: THESE ARE NOT BUY RECOMMENDATIONS! Comments contained in the body of this ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.