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Premarket Outlook

Ugly, ugly financials.  JP Morgan’s $2 Billion trading loss has entire financial sector under pressure this morning.  Your technical breakdown:

May 11 Premarket Movers

Stock Movement Reason Our Comments
JPM Down $3.30 $2 Billon trading loss. Question risk control of bank, and possibly other banks.  Entire sector under pressure this morning.  Really consolidating between 37.60 and 38 in premarket trade.

 

C Down 1 point. JPM trading loss. Key swing number may be 30.

 

GS Down 3 points. JPM trading loss. Huge psychological support at 100.

 

BAC Down 22 cents. JPM trading loss. Had found good support at 7.65, that area may now serve as resistance.

 

JWN Down 2 ponits. Earnings last night. 50 area may provide key psychological support.

 

NVDA Up 1 point. Earnings. Getting a nice lift off earnings report.  Has traded as high as 13.63 in premarket. 14 area may provide resistance as well.

 

DDS Up 1 point. Earnings last night. Traded to new 52 week high last night.  Old 52 week high of 67.22, may now provide some support.

 

 

* Listen to Market Outlook show at 8:45 ET for technical breakdown of financials and other market movers.

 

Premarket Outlook 8:35 update

CSCO, PCLN disappoint.  AAPL starting to form a rounded bottom. Your complete premarket outlook:

Premarket Movers 8am update

Stock Movement Reason Our Comments
CSCO Down $1.19 Earnings last night. Back to the old CSCO ways…disappointing the street.  17 could provide some initial psychological support.

 

NWSA Up 40 cents. Earnings last night. Keep an eye on 52 week high of 20.40.  That could provide some initial resistance.

 

XOM Up 30 cents. Ex-dividend today. Stock went ex-dividend today for 57 cents.  Adjusted closing price is 82.74.

 

PCLN Down 10 points. Earnings last night. Disappointed street last night.  700 could be good psychological swing number.  Good support in 676 area.

 

AVP Up 80 cents. In play again. Coty raises offer for AVP to $24.75.

 

KSS Down 2 points. Earnings. Stock has really consolidated in last couple weeks ahead of this report.  49.50 is key swing area.

 

CTL Flat. Earnings last night. Major support in 37.75 area.  Major resistance at 40.

 

 

* Listen to Market Outlook show at 8:45 ET for more market movers.

 

Premarket Outlook 8:45 am

Back to the lows we go.  Can we bounce? And the House of Mouse reports earnings.  All your premarket action:

May 9 Premarket Movers 8am update

Stock Movement Reason Our Comments
DIS Up 35 cents. Earnings last night. Stock traded up over 45 after the report last night.  Pulling back a bit from those levels, but still trading above 52 week high of 44.50.  That could be a good swing number.

 

SODA Up $5.50. Earnings. Disaster stock finally getting a lift off earnings.  Can it hold onto the gains?  Initial resistance in 36 area.

 

DMD Up 22%. Earnings. Stock flying after report.  It topped out at 9.50 on April 30th.  Keep an eye on that level.  10 should be decent psychological resistance.

 

AIG Up slightly. Upgrade at Goldman. Everybody jumping on the AIG bandwagon.  Trading up a bit despite weak market. Yesterday’s low of 31.05 should provide good support.  Stock will probably find buyers on pullbacks.

 

DB, BCS, RBS, STD, CS Down 1-3%. Euro-banks weak overseas. Euro banks continue to be weak.  US financials may have some sympathetic moves.

 

 

* Listen to Market Outlook show at 8:45 ET for more market movers.

 

Premarket Outlook

Ugly day for MCD, MAKO, FOSL.  S&P futures treading above key support of 1352.50.

Premarket Movers 7:55am update

Stock Movement Reason Our Comments
FOSL Down 29 points. Earnings. Lowered guidance. Trading through 100 support level.  That may be good swing number. 
DNDN Down 12%. Earnings last night. 10 may provide some psychological support. 
MAKO Down 11 points. Earnings last night. Your disaster stock of the day.  Some initial support in 30 area.  Great support in 25 area. 
EA Down 50 cents. Earnings last night, lowered guidance. Keep an eye on 52 week low of 14.48, that may provide some initial support.  Below that, could get ugly. 
HCN Flat. Earnings. 52 week high of 57.95 remains major resistance. 
AIG Up 20 cents. Whitney Tilson bullish AIG. Stock opened at secondary price yesterday and went straight up.  Looks like that secondary offering price will act as a floor.   
 * Listen to Market Outlook show at 8:40 ET for more market movers. 

Affect of Wells Fargo Downgrade on P&G, Not much.

How much stock can you put into the upgrades and downgrades of individual issues by Wall Street analysts?  Well it depends how you use the information.

For example, Well Fargo downgraded Procter&Gamble (NYSE:PG) this morning, noting that the company lacks near-term catalysts and they cut its earnings estimates through 2014. WFC lowered its price target range from $67-71 to $64-67. 

As a result, PG traded down almost a point on very little volume compared with the average daily volume of the stock.  PG made a premarket low of 63.32 just before the open, and just above major support at 63.29.  Low and behold when PG opened on the NYSE, PG never even traded below the premarket low nor the critical level of 63.29.  From there, PG has gone straight up and is poised to test the double top from last week at 64.75-64.76.

How should traders and investors interpret such actions from Wall Street’s brain trust?…very carefully.  First and foremost, do your homework and be cognizant of the price action of the issue in question relative to the more reliable data points derived from the daily sessions.  Obviously traders looking to cover shorts or initiate longs in PG capitalized on this opportunity to buy PG on major support and stepped into action right off the opening bell.

Longer-term WFC may be correct about the long-term direction of PG.  However, before acting on upgrades and downgrades of Wall Street analysts, gauge how their actions fit into your own assessment of the issues (technically and fundamentally) and act accordingly.  There longer term declaration for an issue just may provide you with a profitable short or long term trading opportunity.