PreMarket Prep Recap: Tesla Shrugs Off Double Downgrade, Bed Bath & Beyond Continues Fall

There was no shortage of topics for today's PreMarket Prep Show after Wednesday's impressive rally in the face of a rocky geopolitical environment.

Double Downgrade Of Tesla Shrugged Off

Tesla Inc. TSLA caught not one but two downgrades, one of which was a downgrade to Sell at CFRA with a $400 price target. The other from Baird is quite confusing as the firm downgraded the issue from Outperform to Neutral but raised its price target from $355 to $525.

On most occasions, an issue would be deep in the red after such analyst action and it was briefly in pre-market trading, but Tesla mounted a significant rally.

For those willing to step in front of the rally, daily resistance was noted at Wednesday's all-time high ($498.49), which it briefly surpassed in early trading, reaching $498.80 and sharply reversed course.

At this time, the retreat off that high took the issue to $483, but has since rebounded to trade around $488.30 and is attempting to close green.

Now That Is A Horrible Report

After the close, Bed Bath & Beyond BBBY whiffed on its third-quarter earnings report, coming up shy on EPS by 40 cents along with a sales miss. Also, the company withdrew from issuing any guidance.

The issue, which has been a hedge fund, activist and analyst playground on the upside as of late, tanked off the terrible report. In true 2020 fashion, the "buy the dippers" stepped up, one of which was co-host Dennis Dick.

He predicted shorts would use the steep decline to cover some of their positions into sharp decline. The initial downside surge took the issue all the way from Wednesday's close ($16.65) to $12.50, before mounting a vicious rebound all the way to $15.89 before sellers resurfaced. It should be noted the after-hours low coincides with a quad of lows at that area from mid-November.

After a lower open, it had a brief pop to $14.90 and reversed course, taking the issue to $13.53, which still is $1 higher than the after-hours panic selling low.

Marc Chaikin Joins The Show

Early in the broadcast, Marc Chaikin, the founder of Chaikin Analytics joined the broadcast. He provided an update from his Power Gauge on a variety of issues. Also, Marc fessed up to a few losers, being negative on Tesla and positive on Bed Bath & Beyond.

On Friday's show, listeners will be treated to another round of "Hot Potato." At 8:35 am. EST, one of my favorite guests, comedian Bill Santiago will be our guest with an always humorous take on the markets.