- pre-bell open Thursday may have potential surrounding the 12 mark. RT has recorded an earnings-driven after-hours decline in two of the last 12 quarters tracked in our MT Pro database. 100.0% of the time (2 out of 2 times) the stock followed-through in the same direction by the close of the next day's regular session compared to the Extended Hours "effective close". When it followed-through, the price closed further in the same direction on average by 10.3% (in 2 events) from the "effective close". The data on the downside is a tad limited in terms of giving context to continuing a negative widening pattern, but the sharp selling recorded in tonight's trade at the least suggests the stock could still struggle near the same levels in morning trade. Shorts may want to target potential entry points near 12.42 to 12.25, an area that formed as a top in early night trade. More risk tolerant shorts may want to bring the entry down closer to 12.25 to 12, levels that stood as a ceiling into the mid-session and second-half of evening action.
- pre-market open Thursday may have potential surrounding the 21.25 to 21.50 area. BLUD has recorded an earnings-driven after-hours gain in 8 of the last 10 quarters tracked in our MT Pro database. 62.5% of the time (5 out of 8 times) the stock followed-through in the same direction by the close of the next day's regular session compared to the Extended Hours "effective close". When it followed-through, the price closed further in the same direction on average by 5.4% (in 5 events) from the "effective close". The firm widening pattern in place on the upside would have us looking at potential long plays on BLUD Thursday morning. Early buyers may want to consider upside entry points between 21.25 and 21.50, an area that could form as a possible floor support and see bumps back toward 21.75.
- pre-market open Thursday may have potential between 53.50 and 54. We noted earlier today that a long side bet on BBBY is a split call for traders. BBBY has recorded an earnings-driven after-hours gain in 13 quarters tracked over the last seven years in our MidnightTrader database. The stock has six times added to its evening gains the following day; six times reversed direction the next day; and in one event it closed the after-hours session flat and followed that move with a next-day gain. We stated that shorts should be watching for ceiling levels developing off upside moves, but there's also room for longs to play off any floor level support that may form tonight. With that in mind, on the short side, we'd move to the sidelines through the early going Thursday as there was a good mix of liquidity near tonight's highs which could go either way. If the 54 to 53.50 area holds as an initial top then shorts may be able to catch some downside drift back toward 53. On the long side, buyers may have the better opportunity at the higher levels seen tonight. Early longs may want to linger close to the 53.50 to 54 range, a possible near-term base support as the stock perhaps makes another run at breaking more forcefully through the 54 mark.