Two months ago, I wrote,
More Downside Ahead For Fluor Corp.
Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, operation, maintenance and asset integrity, and project management services worldwide.
Fluor is not only down 30% in May, but down 50% since the beginning of the year. And since the monthly candle just closed below the 2009 pivot low, the chart suggests price will continue to decline to the monthly demand at $13.
Today, I had a great conversation with some of the folks over at the Steemleo Discord channel where I stated the Markets can be timed.
Fluor Corp. is just one example. The fundamentals would of allowed you to time the down fall in Fluor Corp. from the previous earning announcement in May. On Friday Fluor Corp. announced their second quarter earnings. The company reported a net loss of $554.8 million, or $3.96 a share, from a profit of $114.8 million, or 82 cents a share, from a year ago and missed revenue expectations in the process. During the earnings call, the CFO said cash flow was going to be in the red the rest of the year negative and that they would need to sale off some assets.
Even if you aren’t a fundamentalist…like myself, the charts told you the same thing and suggested more downside. After Fluor Corp announced their earnings, the stock dropped more than 25% to a level not seen since November of 2004. We are talking about level last seen 15 years ago.
So whether you area fundamentalist or a chart technician, both analysis work, however, I just chose to use the charts to time the markets as I think it’s a better leading indicator because the Smart Money also leaves their footprints behind.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.