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PreMarket Prep Recap: Trade Tug Of War Continues, Stormy Guidance From Cloud Stocks

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PreMarket Prep Recap: Trade Tug Of War Continues, Stormy Guidance From Cloud Stocks

As long as the trade war with China persists, there will be plenty to cover on the daily PreMarket Prep Show. It just depends on which headline is determining the price action in the futures market during the pre-market session.

Trade deal off, markets in the red. Trade deal on, markets in the green.

Perfect Example

During Tuesday's show, Trump wreaked havoc on the market as stated he's in no hurry to make a deal and we had to analyze the markets from a bearish perspective.

Less than 24 hours later, it was reported that talks are going well and we had to analyze the market from a bullish perspective.

Tune in Thursday to see what the pendulum has swung and what to make of the price action.

Cloud Stocks Murky

Earnings from a few cloud stocks and corresponding price action were discussed on today's show.

After Tuesday's close, Zscaler (NASDAQ: ZS) reported an EPS and sales beat, however, guidance was not up to the Street's expectations.

Since the issue was coming off a nice rally off its Oct. 23 low ($40.05), which peaked Tuesday at $53.07, the author of this article was hoping for a retreat to the $50 area ($46.56) to attempt a lower-risk long entry.

After a lower open, the ensuing decline took the issue just above that level to $47.21, rebounded to $50.05 and is attempting to remain in the $50 handle.

Song Remains The Same With Salesforce

Salesforce.com (NYSE: CRM) was the same story as with as with Zscaler. A quarterly beat for EPS and sales was not enough to offset guidance under the Street's expectations.

Since the issue was volatile in pre-market trading, the same was expected in the regular session. With issue in the red, it was emphasized that it needed to clear Tuesday's closing price ($161.57) in order to mount a rally. Also, since the pre-market low matched Tuesday's low ($156.25) it was key to hold in order to keep the recent rally in tact.

After a lower open, it attempted to reach the close, but came up shy, only reaching $160.60 before reversing course. The ensuing decline took it beyond Tuesday's low; $155.51 stands as the low for the session as of 11:30 a.m. EST. The next daily low in the issue is from Oct. 28 at $149.43.

Jake Wujastyk Joins The Show

Midway through the broadcast, Jake Wujastyk, founding member At TrendSpider LLC joined the broadcast. Jake shared his charts and indicators and discussed what time frames and signals he uses to enter and exit trades.

In a bonus hour of coverage, Sean Udall, CIO of Quantum Trading Strategies joined me to review the price action in the cloud stocks covered earlier in the show. Also, he shared his thoughts on the recent decline in the indexes.

At 8:35 a.m. EST on Thursday, Jerremy Newsome of Reallifetrading.com will be our guest to discuss what is on his radar for upcoming session.

Posted-In: PreMarket PrepLong Ideas Short Ideas Technicals Trading Ideas Best of Benzinga

 

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