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Pre-Market Gappers - Learn to Trade Options | #1 Options Trading Education

Pre-Market Gappers

Published on November 11, 2008

Pre-Market Gappers

November 11, 2008

Well, I sent out this alert yesterday-

Luckily my mid Sept warning came true and we were able to protect our capital (rather now can ride as the bull emerges) and even Dow 8,000 forecast was also materialized. Right now we are at interesting juncture, even though the markets went up on Friday and are up today, my rough cut analysis has given me short tern sell signal…that’s tricky (as always in the bear markets)..it may not be true. But I thought I shall share my 3 cents with you…just an additional data point as you make your investment decisions…

That was y’day, when markets were rocketing due to China stimulus package, since then market have lost quite a few points with another triple digit loss in the making today.

Here is the list of pre-market gappers, Courtesy Briefing-

Gapping-down: In reaction to disappointing earnings/guidance: KFN -36.0% (also downgraded to Market Perform at Friedman Billings and downgraded to Sell at Citigroup), SIL -30.1%, FMCN -22.3% (also downgraded to Neutral from Positive at Susquehanna Financial, downgraded to Accumulate at ThinkEquity), USAP -12.0% (light volume), LVS -6.3%, CPSL -6.2%, TOL -4.4%, SBUX -3.2%… Select financial names showing continued weakness: GNW -13.6% (discloses that it is no longer eligible to sell commercial paper to the Commercial Paper Funding Facility; also Moody’s downgrades Genworth senior debt to Baa1), HBC -6.5%, AIG -6.1% (estimates cut at Stifel), MS -2.5%, ING -2.5%, GS -2.3%, BAC -1.2%, C -1.0%… Select metals/mining stocks showing weakness with lower spot prices: AUY -4.7%, BHP -4.5%, RTP -4.1%, GFI -3.1%, GLD -1.7%… Select oil/gas names showing weakness with crude lower: BP -3.1%, RDS.A -2.8%, TOT -2.0%, XOM -1.7%… Other news: SGMO -57.8% (announces results from diabetic Neuropathy clinical trial SB-509-601; also downgraded to Sell from Buy at Piper Jaffray), TLEO -28.5% (delays quarterly financial report; announces re-evaluation of timing of revenue recognition; also downgraded to Perform at Oppenheimer), VPHM -8.5% (OPTR reported positive results for OPT-80 and reported only 13.3% of patients treated with OPT-80 experienced a recurrence vs. 24.0% for VPHM’s Vancocin), AA -5.3% (to curtail additional 350,000 mtpy of aluminum production across its Global Smelting System; also downgraded to Market Perform at Friedman Billings), GOOG -2.7% (Google 4Q revenue forecast cut at Goldman on poor macro data- Bloomberg), AZN -1.6% (still checking for anything specific)… Analyst comments: TSN -11.4% (downgraded to Underweight at JPMorgan), PRU -8.7% (downgraded to Sell at Goldman – Bloomberg), HIG -5.8% (downgraded to Sell at Goldman – Bloomberg), ACAS -4.1% (downgraded to Mkt Perform from Outperform at William Blair and downgraded to Hold at BB&T).

Oh Yeah there are Gaping-up candidates as well-
In reaction to strong earnings/guidance: TMA +40.9%, TA +13.0% (light volume), VOD +10.4%, ESC +5.4%, ASEI +4.6% (light volume)… Other news: OPTR +93.5% (reports “positive data” from its North American phase 3 CDI study of OPT-80; also upgraded to Outperform at Baird), LNET +24.4% (Mark Cuban files 13D reporting 9.9% stake; may seek talks with LNET), ASTI +6.4% (Ascent Solar and TurtleEnergy sign cooperation agreement), WYNN +2.5% (will replace ASH in the S&P 500), BUCY +1.8% (will replace DENTSPLY in the S&P MidCap 400), XRAY +1.2% (will replace HRC in the S&P 500), PPG +1.1% (Cramer makes positive comments on MadMoney), CHK +1.0% (announces Marcellus Shale joint venture and international unconventional natural gas exploration alliance with StatoilHydro).

Trade carefully, Profitable trading, OP

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