If your stock experiences its largest daily and/or weekly price decline since the beginning of the stage 2 advance, this is a sell signal in most cases even if it comes on the heels of a seemingly great earnings report. Don’t listen to the company or the media; listen to the stock. I have seen companies report earnings that were only a few cents better than expected on in-line revenues and skyrocket, and I have also seen companies report earnings and sales much better than expected but the stocks sold off hard and could not recover.
