DKS

And my gosh, guys, look at this move after earnings. A nasty 30% decline. I'll be I'll admit I was in a victim on on the day trading room today, lost about 2% because this stock just didn't want to bounce.

Now, what I found too on this stock, look at the weekly time frame. If we we wind the time back to August of 2023, 3 years ago, we almost had an identical move after earnings. 29% drop here.

Look at what happened the following weekly trading candles. After the weekly close after earnings, we actually ended up dropping another 10%. Now, we did have about a week recovery effort, but then we dropped 10% and then ripped higher on the charts pushing up over 150% on the charts.

Those four stocks are Adobe, MGM Resorts, Dick Sporting Goods, and Lyft.

Next stock is Dicks Sporting Goods. Not a great month or so for Dicks. Shares are down about 44%. They were down I think it was over 30% after they reported their most recent quarterly report. That is something to be concerned about.

Dick Sporting Goods earlier today says the sneaker market is becoming increasingly promotional, code for cutting prices, and its stock just plunged 27% after the company lowered its outlook.

With all that in mind, now take a look at what just happened at Dicks earlier today. First of all, its stock is getting absolutely crushed, down 27% before I just started recording.

And why? One word, promotional. The company lowered its outlook amid weakness associated with Foot Locker and an increasingly promotional footwear market. Brands have increased discounting on their own websites.

Legacy sneaker styles just aren't resonating the way they once did, largely due to sticker shock, leading cash strap consumers to shift toward brands such as UGG and Birkenstock.

Foot Locker's Pro former comparable sales fell 3.6% last quarter. Dick stores performed better with nearly 5% growth, but the company still expects elevated discounting to continue through the fourth quarter.

That tells us this is not simply one unsuccessful retailer. The broader sneaker market is becoming more promotional. Brands and retailers have inventory they need to move, while customers, they've become more selective.

So, Dixs specifically cited macroeconomic pressure and increasingly choosy consumers as concerns weighing on their profitability, leading to that 27% share price haircut.

Yeah, Dick Sporting Goods down. I heard they were also talking about weak uh weak shoe sales.

and Dicks Sporting Goods shares are really plummeting there in their worst state on record after the company missed revenue.

What is happening right now that is causing like a dick sporting goods to move 30% in a day? So, yes, why why would why would there are two audiences who should care, right? The CEO the CEO of Dick Sporting Goods probably cares that the stock's down 28%.

And then there are the the holders who who um you know who who don't have a chance to react to it.

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.