" AA beats (headlines - at first glance though Adjusted EBITDA is half Q2 2011's) and is holding modest gains after-hours - though well of initial knee-jerk reaction highs"
I wonder if this might be a "sell the news event later as the devil is always in the details and may explain why the 1 and 3 min charts were positive today while 5 min, etc was negative.
In other words, the short term accumulation by market makers/specialists on the 1 and 3 minute timeframe would see those accumulated shares being sold in to after hours and as the devil in the details is discounted by the market, the 5 and 15 min negatives take over. This "could" also be enough to move the market in to the gap early tomorrow and if the AA story plays out something like I described, would provide some of the catalyst to finish up the short term divergences in the market that have suggested a move in to the gap before pulling back in a more serious fashion.ck
A quick reminder of A charts of interest...
"If" this scenario did play out, then it would be fairly likely that there was a last minute leak that more or less said AA's headline number will beat, there will be a knee-jerk pop, it will be sold in to by smart money as the devil/details come out.
That would be interesting, it still wouldn't be an earnings trade I would call out as it doesn't have the profit potential considering the earnings risk, but interesting.
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