A common snort heard this morning from Taser (TASR) bulls: “Don’t taze me, bro!” That fell on deaf ears. (February 29, 2016)
TASR CLF X SHAK TASR SWHC TASR
Lets look at Taser ( NASDAQ:TASR ). This is interesting; the buyers, first thing in the morning, definitely got tased. They should have said, “Don’t tase me bro.” What happened was, the company reported some pretty strong earnings. They make the stun gun, which is good for home use, when somebody comes to visit and they weren’t invited, or for other places. They also make the body cameras. There’s a big movement towards that, as there should be. But that’s for another time. The bottom line is, this is a stock that had been trending down for quite a while. This pattern here, right here, this is looking a lot like Cliff’s Natural Resources ( NYSE:CLF ), like US Steel ( NYSE:X ), a few others.
Back to Taser ( NASDAQ:TASR ); the company comes out, not surprising that they reported great earnings. Their revenue and their earnings topped estimates, it’s all good. But what happened? Right up at the top, probably within 10 seconds, the stock hit the high of the day and then trickled lower, ever since, on massive volume. Here’s what I would suggest doing: Don’t buy this tomorrow, even if it kind of trades up a bit, I would be surprised if it did, but if it trades up a bit don’t buy it tomorrow, that’s a bull trap. This is massive, massive selling, massive distribution. You’ve got to let this thing play out. Remember Smith & Wesson ( NASDAQ:SWHC ), how this thing got very, very ahead of itself, way ahead of itself here, and then it took several days, a couple weeks actually, for this to cool off.
So look at Taser ( NASDAQ:TASR ). If you want to be long, great! Just be long from 18.00ish, something like that. My bet is the stock will get down there, in this volatile market, and give you a chance to get in. Frankly, if you’ve got the time to sit and watch the box all day, watch your computer all day, this was a pretty good short. It was a good 59-minute trade. I’d like to say that I made it, but I didn’t. I wasn’t looking at this until later in the afternoon. But I hope somebody made some money on it. This is probably a good short even until tomorrow, just make sure you use a trailing stop.
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