How To Spot An Earnings Waterfall In Advance

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When one growth glamour air-pockets, you can bet that there are more to follow.

FSLY sunk 20 points after reporting on Thursday.

It was telegraphing a drop by virtue of bearish Train Tracks with Wednesday’s 5 point drop off a Climax Run to record highs.

AYX was on deck to report Thursday after the bell.

I couldn’t help but wonder if AYX wasn’t signaling an air-pocket of its own 9 point knife from what looked like a right shoulder of a possible Head & Shoulders top formation.

As well, AYX was perched ominously on a trendline up from the March lows going into the bell.

So, I tweeted that AYX may do a FSLY.

Checking my Square of 9 Wheel showed that 360 degrees down from AYX’s July 185.75 all-time high was 135-136.

185.75 purple
136 green

The risk to reward presented a compelling short.

AYX fell a stunning 33 points after hours down 42 points on the day.

It will be interesting to see if AYX rebounds off this 135 region and what the complexion of such a bounce reveals.

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