Monday, August 1, 2011, Inc. (SOHU) Pre-Market Short Trade

Click chart for larger view. See multiple arguments below.

Multiple Arguments:
  • News
    • reports Q2 EPS $1.21 vs. consensus $1.06  Reports Q2 revenue $198.7M vs. consensus $190.78M. Exceeds high-end of guidance by 3c and $5.7M. Major Contra Argument with the stock not up in a 1.255 overnight gap in the S&P Futures
  • Level II Refresher
    • Sellers entering heavily during first resistance $90 break.
  • Momentum Trend
    • Good momentum, strong volume spike around failed $86 support level
    • Falls past $90 support level
    • Fills gap up with trend of lower highs, signaling reversal
  • Relative Weakness
    • plus to minus on the bell after solid quarterly #'s. Apparently the inline guide was not enough and these levels are priced in. 

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