GRMN in focus

As a followup to last week's post about the weakening of GRMN I would like to focus on the GPS technology company this week for earnings wednesday. Last week I said that I expected the stock to head lower after it closed out the previous week just below it's 50 dma which had been compromised twice recently. Well the stock bounced monday and looked to head higher off of the 50 dma, but check out what happened next, and especially note the action thursday and friday:

Of course it is important to be aware of the context. GRMN announced a new GPS plane navigation system last weekend which justified monday's bounce then we had major rallies in the broader markets albiet on lower volume. Nonetheless GRMN took a beating after trying to lead like it has been. They post earnings on wednesday morning (11am ET) and I see two factors that could be driving the heavy selling going on in GRMN. The first would be a general fear that GRMN may dissapoint even slightly and get punished like other would be leaders RACK and SWIR on friday. The second is genuine smart money selling ahead of a bad report. Either way (or perhaps others) it will be very interesting to watch GRMN next week and see if the technicals correctly predict a plumit wednesday.

Lets take a quick look at a longer term chart to see how far it can fall in the event of the catastophe I see coming in the chart:I see the first stop at 80 but with a really nasty break GRMN could spend some time in the 60's. I will post updates on GRMN's progress this week. Cheers!