Charts of the Week: Groupon Takes a Dive
Why would you buy this?
Just as we expected, shares of Groupon (GRPN) are getting slammed after refilling the bearish gap down mid-November.
But what'd you expect from a social networking stock?
Near-Term Future of the Dow...
As I was telling options readers yesterday, yesterday's 200+ point rally would be short-lived. We're over-extended on the upper Bollinger Band with an overbought read on W%R. Look for a pullback shortly before buying calls for possible further upside.
That was yesterday. Today, the Dow is beginning its pullback.
Wal-Mart Slams into Overhead Resistance
We're also watching Wal-Mart (WMT) as it slams head first into overhead, historical resistance. We believe the stock could snap back on failure to reach a new high. Here's what we're looking at.
Acme Packet... Slaughtered at Open
Look for further downside in shares of Acme Packet (APKT) after it hit a new 52-week low.
The company just cut its Q4 outlook yesterday, and is down more than 20% today. More than 33,000 options traded hands today. A majority of that was put buying.
The company now expects EPS of 26 to 28 cents a share, as compared to consensus estimates of 37 cents. For the full year, the company sees revenue of $308 to $310 million, as compared to an earlier forecast of $315 to $320 million.
The stock may be worth picking up here after the stock plummeted 70% from April 2011 highs. Catching a falling knife is never a good idea, but the bad news may be baked in at this point.