Recent Strength Might Be An Exit Opportunity Here

Last week, we saw Snap, Inc. (SNAP) rise to its highest level in two months, just before it released its awful Q2 earnings report.

While the short-term strength was nice, SNAP remained very close to its 52-week relative low as Wall Street simply wasn't buying. After last week's dismal report, we now know why.

Enter ROKU, Inc. (ROKU):

Clearly, $100 represents very significant price resistance. Meanwhile, I wouldn't be shocked at all to see ROKU revisit its mid-June closing low of 73.25 this week. There's just been no budging of its relative strength line vs. computer hardware ($DJUSCR) and it remains very close to a 52-week relative low.

Once again, Wall Street is showing little interest in ROKU and we might just find out why on Thursday. Holding any stock into earnings is risky, but I believe it's even riskier when Wall Street is turning its back on a company.

What does this mean?

• I don't care what happens to ROKU after its earnings report, there's simply no way I'd be a buyer heading into those earnings - there are WAY too many warning signs here.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.