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+251% Earnings. +1,843% Sales. And a Chart That Doesn't Care.

LQDA is another great reminder of why you should NEVER fall in love with a stock.

Look at these numbers:

• Quarterly EPS growth: +251%

• Quarterly sales growth: +1,843%

• Fund ownership growth: +30.7% in the latest reported quarter

These are the kinds of fundamental numbers we study in the biggest stock market winners of all time.

But look at that chart. Massive selling volume, a complete breakdown through the 50-day and 200-day moving averages, and a stock down over 60% in just one month.

William O'Neil put it perfectly in How to Make Money in Stocks:

"The moral of the story is: never argue with the market."

Explosive earnings and sales don't give you permission to ignore price action, institutional selling, or your exit rules.

You can be absolutely right about a company's fundamentals and still lose a fortune trading its stock.

Fall in love with your process, not your positions.

Not Every Pharma Stock Is Just a Story

LQDA is a healthcare name that has consistently appeared on my screener over the past several months.

What separates it from many speculative biotech and pharmaceutical stocks is that it has the actual earnings and sales growth behind the move.

The fundamentals have been supported by strong price action. LQDA recently reached another all-time high and has been one of the market’s strongest-performing stocks this year.

Now it is gapping up almost 5% in pre-market trading.

LQDA: This Is What a Real Earnings Catalyst Looks Like

LQDA has had a strong run since the May 11 earnings catalyst.

High relative strength, MTS Score at 99, strong industry group ranking, and major acceleration in earnings, sales, and profitability.