Dollar Tree Revisits Mini-Flash Crash Low After Q2 Results

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Dollar Tree Inc. DLTR shares are trading lower by $5.20 at $71.06. in Tuesday's session. Despite a Q2 beat for EPS ($0.67 vs. Est. $0.62), the Street is focusing on its lower sales ($3.01B vs. Est. $3.04B). In addition, the company issued a weak sales forecast. Although it had a sharply lower open, ($72.39 vs. Monday's close of $76.26), there was still some money to be made on the short side. After a brief pop to $72.75, another wave of sellers flooded the issue. The ensuing decline took the issue to a very significant level. During last Monday's wash-out in the market, the issue bottomed at $69.63 and rallied to $77.39 last Friday. In today's session, buyers stepped ahead of the level by one nickel. this time bottoming at $69.68. Since making that low, it has rallied and has been consolidating at the $71 level.