Lets talk ASEI.
For the last four quarters, three have had negative surprises and two of them have been rather large to the downside. This tends to point toward having another surprise to the downside and more of a drop coming up.
Also, check out that Growth Estimate! Look at the big difference between the stock and the Industry and the Sector. The larger this ratio is the more of a chance that the crowd is wrong especially when the stock has been climbing in expectation of earnings.
So not only is the crowd wrong, but the crowd is already pricing in a good earnings report. So even if the report was good, the crowd would then move on and sell off a bit. But the double whammy here is if the crowd is TOTALLY wrong and its a negative earnings report miss (which is probably going to happen due to the analysts estimates and the growth est of the stock) then the stock would be doubly punished and drop.
Also, we are timing the QQQ upcoming drop to aid the stock on the way downward, much like a beach ball (stock) being dragged out by waves moving back off the shore back into the water (stock market). Below is a chart of this stock:
So again, this is not a 100% certainty, but what we are doing is stacking the deck in our favor to make money over the long term. Even if this stock doesn't do what we are planning on, well, according to numbers and price history set up, it should. We keep stacking the deck so that in the long run, we will always make money.
So tomorrow morning we are going to keep our eyes peeled during the first half hour of market open. If the market doesn't drop immediately on open, and if this stock doesn't drop immediately before open, I am going to generate a put option signal for this stock. I want things to be still high for us to get in and get the full value of the upcoming drop to gain maximum value on our put. Lets keep our fingers crossed and go against the crowd and make some money.
Stay Frosty,
Mark
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