Cakra formation
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Should You Chase Citi Trends After Q3 Earnings?
Benzinga· 2025-12-02 13:40
Citi Trends (NASDAQ:CTRN) released its Q3 results today, reporting $197.1 million in total sales, a 38.9% gross margin, and a net loss of $6.9 million. While higher store traffic helped lift sales, and management delivered a generally positive outlook, the key question is: Should you chase the stock after earnings?To answer that, we examine Citi Trends through the lens of its Adhishthana cycle, which tells a far clearer story than the earnings print alone.Analysing Citi Trends' Adhishthana CycleCiti Trends ...
Why Nutanix's 18% Decline Shouldn't Surprise Investors
Benzinga· 2025-11-28 15:37
Core Viewpoint - Nutanix's stock fell over 18% after reporting earnings that were below analyst expectations and providing a weak forward outlook, indicating a pre-existing structural decline that was anticipated [1]. Group 1: Stock Performance and Analysis - Nutanix completed its Cakra formation and broke out in Phase 9, leading to a significant ascent, with a peak around $83.36 before entering a descent phase [2][4]. - The stock has since declined approximately 43% from its peak, which is considered normal for a descent leg in its current cycle [2]. - The current selling pressure aligns with the structural expectation that the stock will revisit the Cakra breakout level of around $31 [6]. Group 2: Future Projections - Nutanix is currently in Phase 12, with expectations that Phases 12 and 13 will focus on completing the descent, followed by a consolidation phase [7]. - Clarity regarding future performance will emerge when Phase 14 begins, which will determine the potential for a strong rally in Phase 18, referred to as Nirvana [7]. Group 3: Investor Sentiment - In July, most institutional ratings on Nutanix were bullish, but a cautious analysis highlighted structural risks and advised restraint [10]. - The descent is not complete until the stock approaches the ~$31 region, suggesting that new long positions are premature at this stage [11].
Dollar Tree: The Hidden Risk Wall Street Is Missing
Benzinga· 2025-09-05 13:21
Core Viewpoint - Dollar Tree has experienced a significant breakdown in its stock performance, contrary to typical expectations during Phase 9 of the Adhishthana cycle, indicating long-term underperformance and structural risk for the company [1][3]. Group 1: Adhishthana Cycle Analysis - Dollar Tree is currently in Phase 9 of its 18-phase Adhishthana cycle, which usually signifies powerful breakouts and the beginning of a rally [1]. - The stock created a Cakra formation between Phases 4 and 8, but instead of breaking upward in Phase 9, it broke down, triggering the Move of Pralay, which indicates prolonged underperformance [2][3]. - The breakdown has resulted in a decline of up to 51% for Dollar Tree, confirming the framework's warning about structural risks [3]. Group 2: Current and Future Outlook - Despite a rebound since November 2024, the stock remains in Phase 4 on the weekly chart, suggesting that short-term strength should not be interpreted as a structural turnaround [4]. - The Guna Triads, essential for assessing long-term potential, will not materialize for nearly a decade, indicating that underperformance may continue for an extended period [4]. - The formation of Dollar Tree's Cakra took over 5,300 days, making the breakdown particularly significant and pointing to deeper fundamental fragility [5]. Group 3: Investor Sentiment - The outlook for Dollar Tree is dominated by downside risk, with large institutions like JP Morgan maintaining an 'Outperform' rating, but analysis suggests that any upward movements will likely face resistance [6]. - The recommendation for Dollar Tree remains underperform for the long term, advising existing investors to consider hidden risks and new investors to avoid exposure until structural improvements are evident [6].