When: Price flush to $115-120 with RSI reset below 50

Then: Re-engage on the dip with full or partial trim recovery

TRIM 30-40%, maintain 2-3% residual, stop at 129.50

• RSI at 69 after a 10% single-session gap on double-average volume indicates marginal buyer exhaustion, not new conviction; prior RSI at 69 only led to a stall, not continued upside
• MACD peaked at 6.02 on August 13, now at 5.63; histogram compressed from plus 2.13 to plus 0.46, an 80% reduction in bullish momentum over two weeks while price made a recovery high
• Zero Reddit retail engagement despite a 29% monthly rally indicates beta/passive flow-driven move rather than fundamental conviction; CRM moved 22% while NOW only moved 5% on same day
• Operating income fell 68% quarter over quarter; gross margin compressed 690 basis points; buybacks went to zero
• Total debt expanded 248% to fund a $7.45 billion acquisition; goodwill is $9.84 billion representing 78% of stockholders' equity
• Current ratio of 0.70 indicates near-term liquidity concern; forward P/E of 27.7x with elevated duration sensitivity
• Jackson Hole presents asymmetric downside: Warsh speech could reprice long-end yields 10-15 basis points, equating to 4-6% multiple compression on elevated duration stock
• Stock is extended 8% above the 10 EMA, creating negative carry into binary macro event
• Conservative risk management framework calls for trimming into strength, not capitulating; 2-3% residual preserves upside participation if wrong on macro

→ vs aggressive: The aggressive MACD interpretation assumes price catches down to momentum, but statistically momentum leads price back down more frequently; an 80% histogram compression with price making a recovery high is a textbook bearish non-confirmation, not a regime change signal

→ vs aggressive: Citing sector beta strength (CRM at plus 22.6%, VEEV best day ever, IGV positive YTD) as evidence NOW should run higher ignores that this exact setup was flagged as a yellow flag; beta-driven rallies driven by passive flows and ETF rebalancing unwind faster than they build

→ vs aggressive: Framing trimming into strength as 'fear masquerading as discipline' exposes the aggressive case as treating this as binary rather than engaging with downside scenarios; 78% goodwill-to-equity, elevated debt, and a binary macro event 24 hours away warrant appropriate risk budgeting

→ vs aggressive: The 88% probability priced for zero cuts applies to the Fed funds rate, not the long end; Warsh's Jackson Hole speech can reprice 10-year yields independent of near-term rate path, creating 4-6% multiple compression for a high-duration stock

SELL 15-20% of existing position into 138-140 zone; maintain 3-4% residual with $129.50 stop

• Technical breakout is real and confirmed by volume
• MACD divergence is a yellow flag but not a confirmed reversal signal - MACD leading price historically when deteriorating this cleanly
• RSI 69 is elevated but historical base rates do not indicate reversal at this level; early-August 68.8 peak led to consolidation then new highs
• Acquisition creates noise but not fundamental impairment; goodwill went from $4.5B to $9.8B, debt doubled to $5.4B, operating income collapsed 68% QoQ but company can absorb it
• Net debt of $5B against $143B market cap and $5.15B trailing FCF is strategic acquisition, not leveraged balance sheet
• Jackson Hole is a real risk with asymmetric exposure given 27.7x forward P/E and high duration sensitivity
• Current ratio 0.70 is deferred revenue artifact, not a liquidity problem
• Trader's SELL is directionally correct but 30-40% trim is overweight in size; 15-20% trim captures balance sheet risk while preserving upside optionality
• Re-entry trigger: if Jackson Hole passes cleanly and price holds above 136 with MACD histogram expanding above plus 1.0, consider adding back half of trim
• Exit trigger: close below 125 exits residual entirely

→ vs aggressive: The aggression misreads asymmetric downside; dismissing goodwill increase from $4.5B to $9.8B, debt doubling to $5.4B, and operating income collapse of 68% QoQ as 'noise' is dangerous; MACD histogram breakdown from plus 2.13 to plus 0.46 is momentum losing fuel, not a 'brief breather'

→ vs conservative: The conservatism misreads fundamental and technical quality; 2-3% residual cap is appropriate for risk-off allocation but underweights a high-quality compounder with 35% FCF margins, $1B AI ACV, and confirmed IBD breakout; RSI 69 is elevated but not exhaustion level; current ratio 0.70 is deferred revenue artifact, not liquidity problem; Reddit silence could mean institutional accumulation bypassing retail, not flow-driven fragility