Chart Request -CMG

CMG came out with earnings, as you know once in a while we'll catch an earnings leak in a stock, 3C can't tell us what earnings will be, but will suggest how the stock will react and when something just doesn't look right, we suspect an earnings leak.

CMG obviously didn't impress as they are down 22% right now after reporting, the chart request I received was whether or not there was anything that didn't look right in CMG, the answer is yes.

 The daily chart with the 22% drop today

The 3 min chart seems to show a pretty strong round of accumulation, this would normally see the stock move quite  bit higher, but shortly after that there was nothing but distribution in to higher prices, as if something was found out after that position was accumulated at the lows.

 The 5 min chart shows the same thing, a leading positive divergence or accumulation at the lows and then a very strong leading negative divergence in to higher prices as if those accumulated shares were being dumped aggressively in to higher prices and earnings. All of these charts have been rolled back to yesterday's 4 p.m. close except the last one so you can see what 3C looked like before earnings.

 The 30 min chart also shows a leading negative divergence in to higher prices, this is a pretty long timeframe to see action like that if everything was normal and there wasn't inside information floating around.

The current 15 min chart showing the increasingly negative divergence in to yesterday's close, today at the lows there are obviously some knife catchers as we see a positive divergence, perhaps we get a dead cat bounce from here, it's not my kind of trade, at least with what we see as of now.