02Jul10:05 amEST

Cheap Shots During Independence Day Week

My BlackLine long is taking it on the chin this morning after a rare "double downgrade" by an analyst at Goldman Sachs from a Buy rating all the down to a Sell rating.

For this to happen during a holiday week, low volume and all, seems a bit dodgy if not a cheap shot, and, naturally, my bullish bias towards BL has me even more skeptical of Goldman's call. 

And while part of my would like to use my social media visibility to rail against Goldman like Gene Hackman did against English Bob, or perhaps rail against vampire squid and other derogatory names thrown Goldman's way over the years or, perhaps, how "rigged" it all seems to play markets, such is life on Wall Street.

And such is life as a speculator. 

At issue now is whether BL remains a viable software growth stock worth holding. First and foremost, BlackLine is an enterprise software company that develops cloud-based solutions designed to automate and control the entire financial close process. Turning to the technicals and gauging BL's updated daily chart, below, the stock did indeed bounce initially off its 200-day simple moving average this morning. If that keeps holding, all is not lost. 

But if BL can reclaim $50 today it would be a strong reaction to the morning slide, all things considering. Could this be the ultimates shakeout? It could, as BL still has pretty strong growth and is always a buyout candidate at its market cap of $2.6 billion or so. 

Overall, BL will have the rest of today and perhaps the half day tomorrow (we close at 1pm EST on Wednesday) to show me that it is capable of shaking off a double downgrade from a banking house like Goldman during a light holiday week. If it can do so adequately, I would view it as a very bullish sign going forward. 

An Interesting Exhibit Stock Market Recap 07/03/19 ...


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