By Barrie Einarson

Sometimes the best trades come from the names you haven’t thought about in years.

That was the case today with Groupon ($GRPN). To Subscribe: https://go.trade-ideas.com/SHQ
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Whenever I see Groupon pop up on a scanner or around earnings, I can’t help but joke: Who the heck still uses Groupon? I say the same thing about some of the early tech-era names like eBay when they show up during earnings season.

But jokes aside, the AI scanner picked up something interesting.

The Setup

Around 11:54 AM, GRPN presented a short opportunity.

The stock was already showing weakness and trading well below VWAP, which is always something I pay close attention to when looking for downside continuation. The AI was essentially signaling the same sentiment I had — there just wasn’t much bullish momentum behind the move.

That gave us the opportunity to take a short position and press the trade lower.

The Move

After entering the short, the stock quickly drove down from $11.54 to about $10.51.

That’s a solid move, especially for an earnings-driven setup, where volatility tends to amplify momentum in whichever direction the stock decides to go.

What I’m Watching Now

Even after that move lower, the chart still suggests the possibility of another leg down.

Here’s what stands out:

• Price remains well under VWAP
• The Orange Wave indicator suggests the move may be stalling temporarily
• Consolidation at this level could lead to another breakdown

Because this is an earnings play, I’ll continue monitoring it to see if sellers step back in later for a continuation move.

Key Lesson

Earnings trades can offer some of the cleanest momentum setups of the day. When you combine that with AI signals and VWAP confirmation, you often get strong directional moves.

Even if the company feels like a relic from another era, the chart and the data are what matter.

And today, Groupon delivered a great short setup.