LRCX earnings, revenue and guidance were strong and demand good, but guidance fell below a very high bar, triggering a sharp selloff — about 8% on the day and roughly 120 dollars off its 350 peak to 234, a big move for this stock.

LRCX, which is a chip stock, this was not good. And again, to be clear, their earnings were spectacular, their revenue spectacular, but again, guidance, the bar was higher than I can even show you on this screen, and they came in below that.

And so even though their guidance was really good and the demand is really good, if it's not good enough to where the bar has been set, the stock is going to sell off. So LRCX big drop today.

I mean this is approaching about an 8 n% draw down on the stock today, which for this stock is a big move. Notice it was already selling from this peak at 350. Now it's at $234.

So $120 drop just since October 2nd. So basically three three and a half weeks.

Now the question is what's the level here to trade? This one I absolutely love. If LRCX falls into 224, there's a huge gap fill right there. That looks amazing as a potential day trade long.

So I'll be watching that level very closely today. We'll see if we fall down into that level. Again, currently that's about $10 lower uh than the current price. That would be another fall 4% or so to the downside.