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PreMarket Prep: Bitcoin Bump And Why Tiffany Rallied 10% Last Week

PreMarket Prep: Bitcoin Bump And Why Tiffany Rallied 10% Last Week

After Friday's strong performance in the market, the PreMarket Prep show focused on follow through in Monday's session and listeners were not disappointed. Since the futures markets never went red in pre-market trading, it was evident the sell-off on Friday's close was another "buy the dip" opportunity.

Strength In Tiffany's Last Week, Explained

On several occasions when an issue has a particularly strong week on no news, the news comes out the following week. An excellent example of this is the $10 bump in shares of Tiffany (NYSE: TIF) last week, rallying from its Oct. 18 close ($88.49) as high as $103 before ending the week at $98.55.

Over the weekend, it was reported Louis Vuitton (OTC: LVMUY) wants to buy the company for $14.5 billion, or $120 per share. The company could reject the $120 bid and seek a higher price.

During the broadcast, the issue far exceeded the $120.00 offering price by rallying to $132.44 in pre-market trading. The co-hosts of the show urged taking some profits in the issue, since no higher takeout price had surfaced.

So far in the regular session, the issue remains in the green, but its current high ($130.40) has come up short of its pre-market high.

Bitcoin Makes A Move

Every once in a while, bitcoin makes a significant move over the weekend as lower levels of liquidity make it easier for big players to move the cryptocurrency. Over the weekend, there was a significant move higher.

On this occasion, there was fundamental news to support the move as it was reported Chinese leader Xi Jinping made bullish comments and revealed China's central bank may develop its own cryptocurrency.

Since it's nearly impossible to value bitcoin on a fundamental basis, co-host Dennis Dick suggested relying on technical analysis to determine its next move. The key level being the psychological resistance level of $10,000. On Sunday evening, the futures market did cross that level, but was unable to sustain it and has retreated to the $9,500 area.

No Stopping Microsoft

After posting a strong first-quarter earnings print last week, shares of Microsoft (NASDAQ: MSFT) were flirting with new all-time-highs by the end of the week. This morning's announcement that the company has been awarded a $10 billion JEDI cloud contract has the tech giant's all-time high in the rear view mirror.

In fact, even the low for the day ($143.55) is over $1 above its former all-time-high of $142.37. Investors were alerted the issue had traded as high as $146.50 shortly after its 4 a.m. EST open and it may have difficulty reaching that elevated level during the regular session.

Following a higher open, it raced to $145.67 but has found sellers for the most part and is hovering above its intra-day low.

Tim Seymour Joins The Broadcast

Midway through the show, CNBC's Tim Seymour joined the broadcast with commentary on the cannabis sector and emerging markets.

On Tuesday's show, Jeffrey Hirsch, author of the Stock Trader's Almanac will be the featured guest. Jeff will review the year so far in the markets and what seasonal trends to be cognizant of for the remainder of the year.

Posted-In: Bitcoin PreMarket PrepCryptocurrency Long Ideas Short Ideas Markets Trading Ideas Best of Benzinga


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