Major averages fell on mixed volume yesterday, though the NASDAQ Composite had an outside reversal day on higher volume. This outside reversal day was a primary reason for MDM going to cash as MDM is better booking profits, however small, then switching back to a buy after a minor correction. Further, a number of names had exaggerated moves to the upside, which in this QE environment, is often followed by at least a pause in the market's uptrend. That said, should a minor correction not occur, MDM will most likely switch back to a buy signal should the S&P 500 which is currently 0.5% off its high as of yesterday's close, trade through its high. Though in the days ahead, if it were to gap up above this high at the open, it is usually best to wait and see if the market can hold then moves higher, as it often reverses its gains and heads lower.
El Pollo Loco (LOCO) reports earnings after today's close. Note that last night, www.briefing.com showed Sept 11 as the date LOCO would report earnings, then today they show LOCO will report after the close. Thus it's the responsibility of each investor to track this for themselves, knowing report dates can change, even on a company's website.
Wednesday's downside action in LOCO on lower volume is normal after Tuesday's big gain, especially for an IPO stock, and should not be taken as having to do with LOCO reporting earnings after today's close. In general, it is possible price action can be affected the day before a company reports earnings if the company is reporting earnings prior to the market's open. Likewise, price action may be affected on the day the company reports earnings if the company is reporting earnings after the close. That said, there have been plenty of cases when a stock looks weak in the trading day before earnings are reported yet gaps higher, and vice versa.