Sales and adjusted earnings declined on both a year-over-year and sequential basis. Cash from operations also dipped during the quarter. We're in that weird moment: the statistics define a situation that is still seeing fundamental challenges, but the stock is in an uptrend.

Will the uptrend be broken? Let's think about this. The market sold off on Monday, and it sold off on Tuesday. Adobe was down over 2% on above-average volume at the close of trading on Tuesday before the Q2 report was released. Shares were down another 2.7% in yesterday's after-hours session at one point. From a price-action perspective, I'd be a little hesitant about buying Adobe. No, I'm not about to declare the bulls dead just yet, I'm simply pointing out that you may want to be cautiously patient in this case. How many articles have you read recently about a coming wave of profit-taking? See my point? It will be interesting to see how Adobe fares during the regular session on Wednesday.

Adobe's long-term prospects cannot be ignored. It's a great software company. Just ask all the hobbyist, as well as professional, videographers out there about Adobe's suite of products. They are powerful, and if you're a clever individual, you can make good use of them to produce slick products. Adobe really does add value to those wishing to make short films. Let's not forget the document applications that the company is famous for, too.

Those who don't mind adding on dips and holding for a long stretch of time can probably look at Adobe. My colleague Joseph Lazzaro believes Adobe to be a well-positioned business ahead of a recovery. He's probably correct. Again, though, just remember that if you buy now, you do run the risk of obligatory cost-basis-improvement. In other words, you might have to double down if the bulls feel it's time to change species and become bears. If you're willing to do that, then it's okay to take a look at Adobe.

Disclosure: I don't own any company mentioned; positions can change without notice.