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Whole Foods Drops Further in Pre-Market from After-Hours Close - Off 9%
Not surprisingly, shares of Whole Foods (WFMI) are adding to losses in today's pre-market session following a sharp earnings related sell-off after-hours yesterday. Historically, the stock tends to add to losses the next day following a drop in the after-hours following an earnings event. The company reported Q2 sales of $1.86 bln, up from $1.46 bln a year ago and about in line with the Street view of $1.89 bln. EPS was $0.29 per share, vs. $0.33 per share last year. The Street was at $0.30 per share. The last time the company reported similar results compared to consensus estimates was back on November 2, 2006. That night, WFMI skidded 14.4% in night trade on Q4 earnings and guidance that were in-line with estimates. Shares sank further the next day, closing the regular session down a steep 23%. by Brooks McFeely (The After-Hours Trading Community) Disclaimer: Please note that charts and commentary provided by the moderator are for educational purposes only. Any trades placed upon reliance on the moderator’s charts or information is taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward trading stocks, futures and options, there is also substantial risk of loss and you must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell stock, futures, options or commodity interests. Most trading systems are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading stocks, futures, and options and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. Never risk more than 2-3% of your account on any one trade. Always define your risk before entering a trade and place a stop to limit your risk. There are no guarantees or certainties in trading. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system’s draw downs. If you are looking for a guarantee, trading is probably not for you. Most people lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. Ironically, worrying about the monetary aspect of trading can contribute to and cause a trader to make trading errors. Therefore, it is important to only trade with true risk capital. |
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