this is one of the most common questions i receive from inexperienced traders. Why do stocks trade down after reporting strong results? $OSTK https://twitter.com/igorappelboom/status/1321820613581901824">https://twitter.com/igorappel...

often the market anticipates good results and this can be seen in the longer term chart. OSTK ran from 20 to 120 this year on anticipation of explosive growth.

last quarter it traded from 65 to 75 after a strong report. when it gapped above 80 this morning my first question was whether this report would be enough to hold the gap? we used 80 as our *inflection* to judge strength/weakness on the Open.

the first move was from R1 to S1 so there was an opportunity to short the retracement to 80 inflection and see what happened. in this case it trended lower for 2ATR.

a more conservative trader perhaps would wait to short after the morning low was breached and it began to consolidate below that level...