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PreMarket Prep Recap For March 28: 8 Days Down On The Dow And Discussing The Dividend Capture Strategy

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PreMarket Prep Recap For March 28: 8 Days Down On The Dow And Discussing The Dividend Capture Strategy

Did you miss today's PreMarket Prep? Here are some of the highlights from the show.

Cautiously Bullish

Co-host Dennis Dick noted he's "cautiously bullish" about Tuesday's trading action, noting that Monday was a classic "buy the dip" day with stocks like United States Steel Corporation (NYSE: X) and Bank of America Corp (NYSE: BAC) opening at the lows.

We also discussed the dividend capture strategy, and how stocks like AT&T Inc. (NYSE: T) will run up in the days or weeks ahead of an ex-dividend date (the company goes ex-dividend April 6).

Key Technical Levels

The following are some of the stocks discussed on the show for which co-host Joel Elconin offered technical levels.

  • AT&T has three lows at the $41.50 area. Don't expect it to go anywhere until it goes below that or above $42.
  • Red Hat Inc (NYSE: RHT) easily surpased its all-time high of $85.01 after Monday's earnings report. On the upside, it's got support above $81 going back to mid-February.
  • Darden Restaurants, Inc. (NYSE: DRI) is also at an all-time high following its Q1 earnings beat. In order to post a new all-time closing high, Darden's stock will need to end the session above its December 9 closing price of $78.60.

Nic Chahine, Options Expert and author of Create Income With Options Spreads on Marketfy, discussed how his view of Tesla Inc (NASDAQ: TSLA) has changed, and how he no longer views the company as an auto manufacturer: "It became clear to me that the company's prospects are more as a tech company than an auto company."

Chahine said if he were to short the stock via options spreads, he'd short the price action, not the underlying concept. On the upside, he said $310 is doable. Listen to the full interview with Chahine here.

The show was also joined by one of our most loyal listeners, Bobwire, who talked about his trading background, what he's learned from trading his own account over the years, and what sources he uses for information. Listen to the full interview here.

How To Listen And Watch

PreMarket Prep is a daily trading ideas show with a focus on premarket volatility and technical setups. You can listen live and chat with our hosts, guests, and listeners every morning from 8-9 a.m. ET here or on YouTube Live. You can listen to the podcast on iTunes, Soundcloud and Stitcher. The full recording of today's show is available below.

Posted-In: Dennis DickEducation Technicals Pre-Market Outlook Markets Trading Ideas Interview General Best of Benzinga

 

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