PreMarket Prep: A Big Winner And A Big Loser Off Q3 Earnings

With nearly 200 hundred companies reporting earnings coupled with several after the bell on, the content for Thursday's PreMarket Prep was predetermined.

Tesla Q3 Report Sends Bears Into Hibernation

After Wednesday's close, one of the most hated issues in the twittersphere, Tesla Inc. TSLA shocked the Street with a huge third-quarter EPS beat. The company also announced trial production had begun in Shanghai and the company expects to make at least 360,000 deliveries this year.

The initial surge in the after-hours session took the issue to $308.52 before settling down into $300.00-$303.00 range by the beginning of this morning's broadcast. Based on the extended price discovery at that area, traders were encouraged to follow the breakout or breakdown of the consolidation phase.

Off the open, it pierced the upper-end of that range rallying to $304.93 but not for long. Once it reversed course and penetrated the bottom end of that range ($300.00), it swooned to $289.20 before rebounding into the $290.00 handle.

Microsoft Volatile After Q3 Beat

Microsoft Corporation MSFT posted an EPS beat of 14 cents along with a sales beat of nearly $1 billion. Why the algos smacked it down over $3 from Wednesday's close ($137.24) was hard to figure out.

With the issue in the green in the pre-market session, we identified the $140.00 area as a potential area of resistance. The reason being, the issue had made two daily highs in that area over the last four sessions, perhaps being an institution(s) looking to exit a large stake in the company.

The issue did rally off its opening print and has cleared out the sellers at that area, so far reaching $140.42. If the issue can close above $140.00 it will be the first since Sept. 19, when it ended that session at $141.07.

Twitter Crushed After Sales Miss, Weak Guidance

Before today's open, Twitter Inc. TWTR disappointed the Street with a third-quarter sales miss of over $50 million and fourth-quarter sales guidance much worse than expected.

Sellers pounced on the issue, taking it down in nearly a straight line from its close ($38.83) all the way to $30,82. Since that low was challenged on a few different occasions, $31.00 area and below was target for a potential long or a better area to cover a short.

After a lower open, it once again went to test that area of support, but found buyers ahead of that low at $31.10. The subsequent rebound took the issue to $32.39 and is now trending down the lows for the session.

CNN'S Digital Correspondent Joins The Show

Paul LaMonica, CNN's digital correspondent joined the show about 20 minutes into the broadcast to comment on earnings season and the exaggerated price action following the reports.

The final quest for the week will be Raghee Horner, Forex and Currency Trading Expert for Simpler Forex.