Market Overview

PreMarket Prep: Schizophrenic Drug Stocks, A Technical Play On Halliburton's Q3 Report

PreMarket Prep: Schizophrenic Drug Stocks, A Technical Play On Halliburton's Q3 Report

Drug stocks were covered at the top of Monday's PreMarket Prep show with opioid litigation set to begin in an Ohio court. 

Drug Stocks Up Last Week, Down Monday

When four drug companies — AmerisourceBergen Corp. (NYSE: ABC), Cardinal Health Inc (NYSE: CAH), McKesson Corporation (NYSE: MCK) and Teva Pharmaceutical Industries Ltd (NYSE: TEVA) — were reported to be in opioid settlement talks, their respective share prices were rewarded.

Without a complete resolution on the horizon, the price spike became more of a selling than buying opportunity during the PreMarket Prep show on Wednesday, Oct. 16. 

The rally did continue in the equities through the end of the week, but with the new trial looming, investors are nervous about the possible verdict and were exiting the issues in Monday's session.

Moving forward, it is important for these issues to hold a majority of last week's gains or their longer-term downward trend will resume.

One Notable Earnings Report: Haliburton

Monday was a light earnings day, with several major reports expected later in the week. 

Before the open, Haliburton Company (NYSE: HAL) announced inline third-quarter EPS with a slight miss for sales. The Street chose to put an emphasis on the cost-cutting measures the company announced that it is taking in North America during its conference call. 

PreMarket Prep co-host Dennis Dick did not put too much emphasis on the actual report, instead using technical analysis to determine the next move in the issue.

He pointed out the major support at the $18 area, as the issue had several lows in that area over the last few weeks, and identified it as a lower-risk buying opportunity.

Halliburton immediately bottomed at $18.10 off the open and worked its way toward the $20 area. The stock was up 6.32% at $19.60 at the time of publication. 

Peloton: A Stationary Bicycle With A TV

Before the open, several Wall Street firms came out with Buy ratings on Peloton Interactive Inc (NASDAQ: PTON), with the most noteworthy being Goldman Sachs initiating the issue with a Buy and $37 price target.  

After a disastrous IPO and subsequent rebound, co-host Dick said he viewed the price spike as a sell opportunity. The author of this article concurred, emphasizing the major resistance at the pair of highs at $24.70 area that coincided with 50% of the decline off its all-time-high — $27.98 on the first day of trading — to its all-time-low at $21.14.

At this time, the higher open was faded ahead of the major resistance peaking at $24.37, and the stock has now fallen into the lower $22 handle. The stock was down 4.42% at $22.48 at the time of publication. 

ROBO, HETC ETF Founder Studebaker Joins The Show

Midway through Monday's show, the co-hosts were joined by Bill Studebaker, the founder of the Robo Global Robotics And Automation (NYSE: ROBO) and Robo Global Healthcare And Innovation ETF (OTC: HTEC).

Bill compared the robotics and artificial intelligence sector to the early stages of the internet and shared several reasons why he said investors should consider this sector as an investment for the future.

On Tuesday's show, Nic Chahine, the author of "Create Income With Option Spreads," will update his fundamental and technical view of the market and set up some options trades ahead of several big earnings announcements later in the week.

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 iTunes, Google Play, Soundcloud, Stitcher and Tunein.

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