Pattern Recognition:

As technicians, we are always on the lookout for patterns that tend to repeat themselves. One should always be looking for some kind of edge. Of course, once any strategy becomes too well known it loses its luster. One that may be viable here is that ORCL has become somewhat reliable in disappointing after earnings. On its last 3 occasions, including today it fell and did as well on 6/16 and 3/11 falling by 5.6 and 6.5% respectively. The important thing to recognize is that it marked the short-term bottom. After the March low the stock traveled nearly in a straight line from 65-80, and then after the June report, it went from 76-91 rather quickly, almost in perfect symmetry rising nearly 15 handles each time. If that were to occur again it would trade from today’s low near 85 to the very round par number. Just a thought, but probably good risk/reward using a CLOSING stop below the Tuesday low, after today’s spinning top candle. 

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