From a trading perspective, I wanted to give you a quick idea of what I look for in a trade. I bought Tandem Diabetes Care (TNDM) when it crossed back above 31.21 and I'll hold it unless it closes beneath 31.00 or moves intraday beneath 30.00. Here's a quick chart:
I like trading false breakdowns on stocks that recently reported quarterly results above Wall Street's expectations. TNDM reported the following:
Revenues: 46.3 mil vs. 41.8 mil
EPS: (.30) vs (.34)
The recent selling on TNDM has been fairly light relative to the volume it saw during its accumulation phase. I'm not a registered investment advisor and am not recommending buying TNDM. Rather, this is an educational article highlighting one of my trading strategies. If you trade TNDM, please do so at your own risk.
I hope that providing the above in real time is helpful.
About the author:Tom Bowley is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas.