Huge move in WFM today, which was somewhat forecast by a fall below its 50-day SMA yesterday. After a 6% drop before earnings next week, its now likely fallen off our radar for earnings-based trades. This drop has taken it outside the range of its year-to-date regression channel, and really is the first break from a year-plus long rising trend. There’s still some support around $80 at the 200-day moving average, but that’s no comfort for anybody who was long Whole Foods this morning. Despite the big drop, implied volatility is only up 4 percentage points, not the largest IV change this year. We’ll keep watching, but this one’s probably out of our wheelhouse until after earnings. 

Huge move in WFM today, which was somewhat forecast by a fall below its 50-day SMA yesterday. After a 6% drop before earnings next week, its now likely fallen off our radar for earnings-based trades. This drop has taken it outside the range of its year-to-date regression channel, and really is the first break from a year-plus long rising trend. There’s still some support around $80 at the 200-day moving average, but that’s no comfort for anybody who was long Whole Foods this morning. Despite the big drop, implied volatility is only up 4 percentage points, not the largest IV change this year. We’ll keep watching, but this one’s probably out of our wheelhouse until after earnings. 

Tags: wfm whole foods technical analysis moving average earnings regression channel implied volatility trendline