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PreMarket Prep Recap, March 20: Major Volatility At Friday's Close And Why Disney Is In For A Big Quarter

March 20, 2017 10:47 am
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Did you miss Monday morning's PreMarket Prep? Here are some of today's highlights.

Wild Volatility At Friday's Close

Friday's quadruple witching brought with it some significant volatility at the end of the trading Premarket Prep co-host Dennis Dick noted.

"That was one of the wildest closes I've seen in a long time," Dick said. "What happens sometimes is you have institutions jockey for position at the close. Sometimes that leads to really big imbalances at the close. Often they get paired off and don't move the stocks. That was not the case on Friday."

Among the stocks Dick highlighted with significant volatility at the close: Procter & Gamble Co (NYSE:PG), Wal-Mart Stores Inc (NYSE:WMTPNC Financial Services Group Inc (NYSE:PNCHome Depot Inc (NYSE:HDQUALCOMM, Inc. (NASDAQ:QCOM).

"There's a lot of movement there sometimes at the close in these things, especially on a quadruple witch. It's not fundamental reasons moving these, it's more institutional order flow. And a lot of times you see these moves retrace." Listen to the whole discussion here.

Stocks We Discussed

Esperion Therapeutics Inc (NASDAQ:ESPR) was trading up after a big down day on Friday.

"For me if it closes over $30, you can forget about that move," Co-Host Joel Elconin said. The stock opened Monday at $32.10. Listen to the whole discussion here.

Chris Versace, Chief Investment Officer at Tematica Research, called Nike Inc (NYSE:NKE) a "natural selection" in the long term.

"Short term we're looking to see how Nike is fending off adidas AG (OTC:ADDYY)," Versace said. "We just see a very vibrant product offering from Nike. Longer term they're going to continue to tap into what we call the rise of the middle class outside the United States."

"Finish Line Inc (NASDAQ:FINL) for us is more of a data checkpoint, along with Foot Locker, Inc. (NYSE:FL)," Versace said. "We want to see what models are selling, who is selling, and what types of shoes are selling. Those data points are going to tell us whether we want to be doubling down on Nike." Listen to the whole discussion here.

"Walt Disney Co (NYSE:DIS) is starting to move into a seasonably strong season for them," he added. "You mentioned 'Beauty And The Beast,' but you've got 'Cars 2' coming, 'Guardians Of The Galaxy,' 'Spiderman: Homecoming,' so we are going to see the box office really move into the forefront of the business model and I think that's fantastic for Disney." Listen to the whole discussion here.

Tommy Lackey, managing partner and portfolio manager at Relativity Capital Advisors, highlighted a few stocks he has his eye on.

Brightcove Inc (NASDAQ:BCOV) is coming out of a base with a big gap close at $10.60.

Repligen Corporation (NASDAQ:RGEN) is breaking a big level at $34 on volume. $36 next level then $38 and $42. Listen to the whole interview with Lackey here.

At 48:10, Dick explained how he gets information to help him trade off order flow.

Notable Ratings

Upgrades to FireEye Inc (NASDAQ:FEYE), Shake Shack Inc (NYSE:SHAK) and Snap Inc (NYSE:SNAP) were discussed here

You can listen to the show in its entirety below.

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

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