Class Back In Session
I consider the action in the market on Monday as something to
dismiss, because many traders were away from their trading
systems due to the two holidays. Although, I was happy to see the
intraday reversal in the techs. Nonetheless, what we see on
Tuesday is likely to be much more significant.
Lately, it seems that the trend off the open relates to the
reason for the early morning activity. Stocks that simply gap
higher or lower as a result of the pre-market action in the
futures seem to have limited follow through, after the first 15
to 30 minutes of trading. Those issues that gap as a result of
news appear to have more follow through. For this reason, I want
to focus on such names this week.
Today’s Opening Watchlist
Silicon Grapics
(
SGI |
Quote |
Chart |
News |
PowerRating) is trading lower on an earnings
warning, in which it stated that it predicts a wider-than-expected
loss.
Building Materials
(
BMHC |
Quote |
Chart |
News |
PowerRating) also warned of lower-than-expected
Q3 earnings.
Information storage provide Storage Tech
(
STK |
Quote |
Chart |
News |
PowerRating) looks to
trade lower on an announcement as well.
Longer-term investors are likely to be disappointed with
Xerox’s
(
XRX |
Quote |
Chart |
News |
PowerRating) announcement that it will cut dividends. The
question that remains is, how much downside can be left? The
stock hit a new 52-week low on Monday, now trading near $10.
On the plus side, keep an eye on American Online
(
AOL |
Quote |
Chart |
News |
PowerRating),
which received approval from the EU to merge with Time-Warner.
Traders may begin to speculate based on the upcoming merger
completion.
Lastly, watch Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating), which is scheduled to kick
off the earnings season.