The theme of this earnings season, at least for the first few weeks, has been “sell the news”. Although companies have, on balance, beat expectations and raised guidance, the tendency has been for investors to fade strength. A lot of that has to do with elevated valuations, but while the bears have assured us that the lack of continued upside momentum is surely a sign that the end is nigh, downside pressure simply hasn’t materialized – at least in the indices.

Under the surface, there have been some nasty reversals and breakdowns, particularly in names that had already made big runs in the first half of the year. Still, there are also plenty of new winners that have taken their place, which is why earnings season can be profitable for the opportunistic and treacherous for the unprepared.

For our part, we continue to dig through the charts and look for developing patterns that could attract traders’ attention. This may be a slow time of year for the overall market, but that just means we need to work a little harder to uncover potential opportunities for our community.

Let’s take a look at some charts.

APPF

ASYS

PIRS

CCXI

At the time of this post, RevShark had no positions in any of the stocks mentioned.

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