PreMarket Prep Recap: 'It Just Doesn't Matter'

Geopolitics dominated the content on Wednesday's broadcast.

What Retreat?

In a response to an Iranian airstrike on U.S. troops stationed in Iraq, stock indexes crumbled in pre-market trading until staging a dramatic turnaround just ahead of the closing of U.S. extended hours trading.

There was no fundamental news that instigated the reversal, nor has there been to explain the continuing rally this morning. From a technical perspective, the shocking rebound has indexes once again flirting with all-time highs and the long-term bull market remains firmly intact.

Boeing Down, But Not Out

With all the uncertainty regarding the safety of Boeing Co BA airplanes, one would think that the crash of another of its fleet would have a devastating effect on its shares price.

Although the issue is in the red by $6 so far in today's session, it hasn't violated the major support at $320 that has been discussed at length on the show.

In fact, it breached Monday's low ($330.71), reaching $329.60, but hasn't come close to testing the pair of lows from last Thursday and on Monday at the $327.75 area. It should be noted that in the chaotic after-hours session, the issue bottomed just under that level at $327.50.

Another Fake Rally In Fake Meat?

Near the close on Tuesday, Reuters reported Impossible Foods is no longer trying to win a deal to supply McDonald's MCD with plant based burgers, citing production restraints. Before the opening bell, it was reported McDonald's expanded its Beyond Meat BYND burger trial in Canada.

As expected with the double dose of good news, the issue exploded in pre-market trading rallying from Tuesday's close ($83.89) all the way $90.10 and reversed course. For those investors that track the issue on a daily basis, that high corresponds perfectly with the pair of highs of Oct. 30 ($90) and Oct. 31 ($90.44).

Co-host Dennis Dick warned against chasing the issue on the news as it still "trades at a ridiculous valuation" and if looking to take a long in this issue, you may have an opportunity at lower prices.

In a seesaw session, the issue peaked ahead of the pre-market high only reaching $88.27 and has briefly gone red on the session as $81.25 currently stands as the low for the day as of 11:00 a.m. EST.

Michelle Krebs Joins The Show

Midway through the broadcast, Michelle Krebs, Executive Analyst at Cox Automotive joined the broadcast. She recapped the automotive market for 2019 and provided an informative forecast for the sector for 2020.

On Thursday, at 8:15 a.m. EST, Marc Chaikin of Chaikin Analytics will provide updates on his Chaikin Power Gauge indicator amidst the recent volatility.