The market did the same thing during the last earnings announcement. It sent shares of CarMax higher. When I discussed the company at that time, I just came out and admitted that I simply couldn't buy the stock. Now, we had a similar situation: a bottom-line beat in conjunction with some bad numbers. That made me think that buying CarMax on an excited tape might lead to bad-timing heartache.

The stock did pull back for a brief period, then it rose again, only to be followed by another decline. After that, the stock rallied yet again along with the market. It's been strong lately, and pretty volatile all along. You can check out a three-month chart at AOL quotes to get the story.

I'll have to say it again: CarMax probably should be avoided considering the earnings-report euphoria. From a trading perspective, you could argue that the news is out and that the trade is possibly over. From an investing perspective, you could argue that, earnings-beat or not, the economy is still bad, CarMax's numbers are bad, and the bullish sentiment on Wall Street needs a correction in a bad way. Now just may not be the time to be in CarMax. You can always take a look at the stock after it gives up some of its recent gains...

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