SNOW
was one of a very good acting stocks from the low of November 23, at around $145, it increased to $236 on Feb 28, 24. A nearly 60% run. Its key moving averages (MA50/150/200) had been acting very well.
On Feb 29, 24,
SNOW
broke down hard violating its MA-50 on huge volume, after earnings. The big gap down of -18% made it looks like a bargain. However, in the stock market, cheap is not equivalent to a good buy.
Even if we bought it on the low of that day, at the time of this writing (March 24) the stock went down another 12%.
- Never bottom fishing.
- Focus on the strongest stocks.
- Trade only the stocks which are above its rising MA-50/150/200
- Scale down before earnings is a good idea.
