Bollinger Bands® Message Board

[gbtalbot@hotmail.com]

I bought Walgreen (WAG) a couple of weeks ago. They reported disappointing earnings this morning and the stock fell about 15%, which according to an article on Yahoo was the worst single day performance for WAG in 20 years. What did I miss? Were there clues available on the website I could have picked up on or was this just a total, unexpected surprise?

[bbands@bollingerbands.com]

A couple of things might have suggested caution. From a Bollinger Band perspective, WAG was a Reversal Sell on 9/25--tag of the upper band with negative Intraday Intensity. Also, WAG had been turned back three times from the 47/48 area. Unfortunately, nothing that I know of suggested the magnitude of fall.

I hope that helps,

jab

[bbands@bollingerbands.com]

In thinking about this overnight, it occurred to me that you might also want to investigate the work of Richard D. Wyckoff, as WAG is a good example of what he termed an Up Thrust. Up Thrusts occur at the tops of trading ranges and lead to declines. He termed the polar opposite formation, which occurs at the bottom of trading ranges and leads to rallies, a Spring.

jab