Market Overview

PreMarket Prep Recap: Market-Moving News On Columbus Day

PreMarket Prep Recap: Market-Moving News On Columbus Day

Despite the Columbus Day banking holiday, there was still a lot of news to cover on Monday's PreMarket Prep show.

After the furious rally Friday, when a deal with China looked imminent, the market took the news that China wanted "more talks" in stride.

At the start of the show, the S&P 500 index was off the lows of the premarket session and was poised to challenge Friday's close. The index ended Monday's session down 0.14% at 2,966.15. 

Finding Resistance In Bank Stocks Due To Report

With third-quarter earnings season ramping up Tuesday, the big banks due to report — Goldman Sachs Group Inc (NYSE: GS), JPMorgan Chase & Co. (NYSE: JPM), Wells Fargo & Co (NYSE: WFC) and Citigroup Inc (NYSE: C) — were analyzed from a technical perspective on PreMarket Prep.

For the most part, the charts offered more identifiable areas of resistance than support based on recent rallies and the retreat from current highs.

Surveying Marijuana Sector 1 Year After Canadian Legalization 

Midway through the show, Alan Brochstein, the author of the 420 Investor newsletter, joined the broadcast to analyze the marijuana sector one year after legalization in Canada.

Despite the carnage in the sector, Brochstein still remains optimistic in the long run. He identified companies that were taking a "cautious" approach to growth that may pay dividends in the future, with Trulieve Cannabis Corp (OTC: TCNNF) being one of his favorites.

The merits of owning Alacanna Inc (OTC: LQSIF), a Canadian alcohol and marijuana distributor, were discussed.

Busy Weekend For Wall Street Analysts

It's rare that Wall Street analysts downgrade issues to Sell, and it's even rarer for one firm to dole out two in one day.

Citigroup slapped the dreaded Sell rating on TD Ameritrade Holding Corp (NASDAQ: AMTD) and Crowdstrike Holdings Inc (NASDAQ: CRWD).

The latter seemed to be more warranted, since it was a high-flying IPO that has cratered — but still trades at a high valuation. The PreMarket Prep co-hosts were cautious and more interested in waiting for the issue to test its all-time low from last month ($51.61) than trying to pick a bottom in Friday's session.

The TD Ameritrade downgrade to Sell seemed to be late to the party. As it turns out, the issue did breach Friday's low ($34.77), trading to $34.58, before rebounding and turning positive for the session. 

Other ratings changes discussed on the show were Nike Inc (NYSE: NKE), Western Digital Corp (NASDAQ: WDC) and Xilinx, Inc. (NASDAQ: XLNX) were discussed as well.

Tuesday's Guest

Along with breaking down the price action as a result of earnings reports, Ryan Detrick, senior market strategist at LPL Financial, will put the market's recent price action into a historical perspective on Tuesday and reveal how he views the markets moving forward.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunesGoogle PlaySoundcloudStitcher and Tunein.

Related Links: 

PreMarket Prep Recap: Making Sense Of A Senseless Market, Finding Support In Delta, PG&E Plunge

PreMarket Prep Recap: Overnight Reversal, Technical Analysis For Dummies

Posted-In: Alan Brochstein LPL Financial PreMarket Prep Ryan DetrickLong Ideas Short Ideas Trading Ideas Best of Benzinga


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