DKS is bearish after earnings miss and poor guidance, with potential further downside from margin calls in the next three days.

Uh Dick Sporting Goods this morning reporting earnings. Take a look at this intraday chart that I'm popping up now. Look at this fall on DKS. It is now down almost 20%. That is a nasty fall on earnings.

And basically, just to summarize the earnings for you guys, they missed on revenue. They missed on earnings and their guidance was atrocious. Now, what's interesting here is we're seeing all sporting goods or or athletic wear stocks coming down because of this.

So Nike's down, Lululemon's down a little bit pre-market because it's affecting the entire athletic wear sector. So keep that in mind. Now, in terms of a trading level, there is an intriguing level on uh DKS coming up really right around 139 or so. [clears throat] So again, this little it's hard to see.

I know you guys probably have a tough time seeing it, but these lows right in here would dictate right around one actually, it's a little lower. It looks like 138. That would be a significant potential bounce level for a day trade.

Would I swing trade it? Heck no. Um, in general, when a stock reports and is bad or really, really good, there's a 3-day window where you'll see either funds buying or dumping.

So, there's additional pressure in that direction. And in a case like DKS where it drops 20% or more, there can be margin calls that have to be remedied and so forth selling of the stock uh over the next three days.

And so in general, um, especially for swing trades on big moves, I like to give myself about 3 days. I call it the three-day rule to let things settle down. Then I start re-evaluating the chart on a swing trade basis.

Day trading, I'm in and out. We're in and out in the live trading room. Doesn't really matter that much in terms of waiting on that.

And basically, just to summarize the earnings for you guys, they missed on revenue. They missed on earnings and their guidance was atrocious. Now, what's interesting here is we're seeing all sporting goods or or athletic wear stocks coming down because of this.

So Nike's down, Lululemon's down a little bit pre-market because it's affecting the entire athletic wear sector. So keep that in mind.

Now, in terms of a trading level, there is an intriguing level on uh DKS coming up really right around 139 or so. [clears throat] So again, this little it's hard to see. I know you guys probably have a tough time seeing it, but these lows right in here would dictate right around one actually, it's a little lower.

It looks like 138. That would be a significant potential bounce level for a day trade. Would I swing trade it? Heck no.

Um, in general, when a stock reports and is bad or really, really good, there's a 3-day window where you'll see either funds buying or dumping. So, there's additional pressure in that direction.

And in a case like DKS where it drops 20% or more, there can be margin calls that have to be remedied and so forth selling of the stock uh over the next three days. And so in general, um, especially for swing trades on big moves, I like to give myself about 3 days.

I call it the three-day rule to let things settle down. Then I start re-evaluating the chart on a swing trade basis. Day trading, I'm in and out. We're in and out in the live trading room.

Doesn't really matter that much in terms of waiting on that.