Clarus $CLAR stock plunged more than -17% on August 26, 2022, as phantom dark pool prints foretold the carnage in this consumer cyclical stock.
Phantom Dark Pool Print In Clarus $CLAR Stock
Guerilla Stock Trading has detected dark pool activity in $CLAR stock. When $CLAR stock was trading at around $24 a share, a phantom dark pool print hit the tape of 1.3 million shares at $18.74.
Phantom dark pool orders are a term used by Blackbox Stocks to designate rare dark pool trades where the price tends to later gravitate towards that price.
The dark pool trades are somebody with millions of dollars, likely institutional investors, getting out of cyclical consumer stocks like $CLAR in the wake of Powell’s Jackson Hole speech, where the next rate hike looks to be 75 basis points in September 2022.
Clarus $CLAR stock downgraded to Market Perform from Outperform at Raymond James
On August 18, 2022, Raymond James analyst Joseph Altobello downgraded Clarus to Market Perform from Outperform without a price target. The stock’s performance has outperformed that of the broader market so far this year, with particular strength over the past month or so despite little to no change in the firm’s forecasts, Altobello tells investors in a research note. The analyst expects cost and supply chain pressures to continue to weigh on margins. At the same time, momentum in its Precision Sports segment is likely to slow after several quarters of robust growth, thereby limiting the upside.
Clarus remains a favorite small-cap idea at Jefferies
On August 2, 2022, Jefferies analyst Randal Konik notes that Clarus’ Q2 revenue came in ahead of estimates as strength in the Outdoor and Precision Sports segments more than made up for pressures in the Adventure segment and that the company’s fiscal year guidance was essentially maintained. Konik said he expects the Great Outdoor Mega-Trend to continue to drive excessive demand and that Clarus remains a favorite small-cap idea, keeps a Buy rating, and $40 price target on the shares.
Bullish Option Flow In Clarus $CLAR Stock Before the Bearish Dark Pool Trades
One of the most devastating trades of the week occurred in $CLAR stock and specifically the options market last week. On August 24 and 25, 2022, just days before the bearish dark pool trades discussed above, there was bullish option flow in the stock. Options traders were making bets on $CLAR stock hitting $40 by December 16, 2022, and some were betting on $40 by October 21, 2022.
Make sure to review this lesson on option flow so that you understand the image above.
Some traders posted videos on YouTube about the bullish option flow in Clarus stock.
Why Are Options Traders So Bullish on this Stock? CLAR Stock Prediction 🚀
Powell destroyed options traders and bulls in $CLAR stock during his Jackson Hole speech on Friday, August 26, 2022. Institutional investors dumped the stock over dark pools as consumer discretionary spending is in freefall from hyperinflation and the Federal Reserve’s interest rate hikes to combat that inflation.
Clarus $CLAR Chart Technical Analysis
Clarus $CLAR stock is in a weak technical uptrend. The chart pattern looks like a classic pump and dump. This stock is too volatile with the considerable panic selling on August 26, 2022. It is better to wait for a consolidation pattern before considering an entry. Consumer cyclical stocks are not the sector to invest in right now.